I finally got it to work! I sent ARP packets to my router saying that my MAC is the target IP, thus making all incoming data sent to me and using the same DNS program I have been using. It didn't work though. I was unable to do any web browsing on the target computer, but it still didn't accept my fake DNS packets...unless I was packet sniffing on the target computer. It would just time out on DNS requests. So I did as you suggested and flipped it around. I told the target computer that my MAC is the router's IP, thus making all outgoing data sent to me. It finally accepted my DNS packets
without packet sniffing. It didn't affect anyone else on the network too. My DNS program tells me that it sends out two DNS requests for every domain I type in though. Probably trying the primary and secondary name servers. So it still doesn't like my DNS answers, but it will take them if it has to. I assume when I redirect incoming traffic the target computer picks up the real DNS answers over the air, but they aren't being sent to its MAC so it doesn't act on them. It is enough to filter out my fake DNS responses though. I still don't understand
why it works but at least it works

. Thanks again katsa.
Now that I have it working I can tweak it to do all kinds of things. I was thinking about redirecting every page to a google earth view of his house. Or display a live feed of him sitting in his driveway. Of course if he has even a little intelligence he can find the camera, it would be cool though

. Or I could have him install flash player version 10. Or maybe a random lolcat. In the end I will probably just display an error message. Since he is my neighbor, I don't want him to know that he has been hacked. Even though I'm pretty sure his laptop is stolen anyways lol. Maybe I can find out who it belonged to and make it look like they hacked it. It looks like the limit to his computer knowledge is how to use a web browser and run Microsoft Office. I'll have to do some more research before I actually run the hack though. If he is running a firewall, it may filter my fake ARP packets. Maybe I'll play around with nmap.