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You need to discover whether or not your local network is switched. If it is, you have nothing to worry about from other apartment dwellers.
Set up a copy of Ethereal, and monitor your ethernet card. If it is not switched, you will immediately see hundreds, if not thousands of packets than neither originate from nor are destined to your computer. If you see this, then your only option for protecting the last mile of your internet access is to tunnel into somewhere else that has access through and encrypted tunnel, and use their connection.
Chances are your network is switched.
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