Hi I am new to this forum and would really welcome some advice as to how to deal with my dogs territorial barking. He is now 19 months old and we have had him from 13 weeks. He was very nervous and we have tried with kind training to get him over a lot of his fears. However, the garden has become a nightmare where we have to take him out on his lead all the time for toilletting. If he is let out on his own he goes beserk all along the fence and barks continuously with his hackles up.There is another small dog on the other side of the fence and two cats so I realise a lot of this is that he cannot see the dog only hear it barking and the cats are a no no even though he lives with my cat ok. The silly thing is that when he meets the neighbours dog out he is fine and loves all other dogs he meets. It has become a habit which we do not seem to be able to break. I have never had this problems with my previous two dogs so this has come as a shock. I do not want to use any kind of spray collar on him as I do not want him to associate the garden with something nasty happening to him. I have been thinking of using training discs but do not know if this will be advisable with a fear aggressive dog. HELP

I don't think spray collars are nasty, they just distract the dog. Its the electric shock collars you need to watch out for

A spray collar might work but you are right to have reservations about them if he is a nervous dog.  I have known some dogs to completely freak out. I wouldn't use discs for the same reason.   As you say, it has become a habit.  Do you ever do any training and/or play in the garden?  You could try clicker training and gradually get him more relaxed in the garden. Teach him to do something else instead, something that he enjoys and is having fun doing, to try and break the habit.  A long line attached to his collar might be a good idea and then the second he starts at the fence just pick it up and bring him in.
Sally

Thanks for the replies. We have tried distraction but he so intent on his mission this does not work. We have tried bringing him in everytime he does this but the minute he gets out there on his own its back to square one. I play games with him in the daytime to make him associate the garden with nice things and all is well untill he hears someone next door or the cats or dog and even when there is no one about. I am at a complete loss.

When you say you have tried distraction do you mean that you try to distract him and stop him whilst he is doing it?  It would be best to just have him on a line and pick it up and bring him in without saying anything.  Then get him to walk out calmly on the line gradually letting it out longer as you go.  If he starts again then straight back in. You will have to be consistent for this to work and it will take a while.  The other alternative would be to erect another fence to keep him away from the boundary.  We have a 'No Mans Land'  on our boundary with next door as they too have dogs.  It is now full of some very pretty, but low maintenance, shrubs so isn't wasted. :)
Sally