I agree with Kirt. File a complaint with the PD. Make sure you make it sound like he is unstable and you feared for your safety when he was ranting and raving. Anonymous call to the zoning commission regarding the shed. At the slightest provocation, call the PD again. Under no circumstances, get in a shouting match with him. You need to appear stable and him not. Eventually, he will crack a bit and say or do something that will get him arrested. Then, with a criminal charge against him, its civil suit time. That will shut the old SOB up....