what kind of hardware should i use for wireless network in range of 500m?

Question

i want to set up local area network with my neighbour in the same are within 500m

Answer 1

Well there are several ways to do this.

Personally I would use something like AirEpoch HGW210-E gateway which has built-in user management and highpower output.
http://www.echotechwireless.com/AirEpoch_HGW210_E_Hotspot_Gateway_p/hgw210-e.htm
(I am sure there are other places to get these.)

It would give you access control on who could access your system.

Add a good Omni Directional outdoor antenna and you're in business. (For the full 500 meters your clients may need more than a simple wireless card - they have to be able to transmit that far also for this to work.)

You do need to be sure what restrictions on reselling bandwidth your internet provider may have on your connection before doing this! You probably need a business class service at the minimum.

Answer 2

Try Solectek...inexpensive, excellent prod, easy to deploy and will also work with limited Non Line of Sight point to point deployments. Adtran Tracer is another effective, less costly prod.
Peace!

Answer 3

My link blog specialprofiled for wireless is a guide for you:
http://dansomnea.tripod.com/linux