Privacy screening for a very narrow space

I need help screening my patio from the neighbor's driveway. Three years ago we removed a dilapidated wooden privacy fence, and while the yard looks much better, I am really missing the privacy I used to enjoy in my back yard.
To make it clear, our neighbors are very nice people, BUT he works on his projects 24/7 in front of his garage, which is about 12 feet from my patio. AND he always wants to talk and tell me about his projects, etc. Fine, but I feel like I am living in a fish bowl! I can't just go sit in my yard or work in my garden in peace.
Last year we put up a screen room/tent on our patio, but even that didn't help and I feel as if I am avoiding my back yard and my garden, which I used to love to spend hours a day in.
I do not want to offend my neighbor, but I need to have some peace and anonymity in my own back yard. To make it even more difficult there is very little space to plant anything - the garden bed is only a foot deep, and our house is only 3 feet from the property line, so the pathway goes right along that narrow garden bed. I considered a hedge, but there simply isn't room, and a fence is not in the budget right now. Vines don't seem to grow fast or thick enough. I don't want something that looks cobbled together, either....
I'm attaching a picture; sorry it is not a good one. My house is at the left, the neighbors is at the right, and the garage, that he works in front of, is in the left foreground. You can see we are very close! I can't put anything along the side of his garage - that is his property and he would not like that! At least he has re-sided the buildings since I took this photo in 2011....
Any suggestions?

Erect a new fence and grow some nice flowering or evergreens along it, you don't have to build a tall fence making the yard like Coldit's, but you have to be sensible and regain your own space.
I have lived beside lovely neighbours also when my kids were young, BUT, I also wanted to close my door, use my yard as and when I wanted to without having to conversate when I want a peaceful seat outdoors, NOT listen to the guy wash his car for the 10th time or telling me how hard he works at the expense of my peace. There's a time and place for neighbourly chit chat and a time for total privacy.

If you feel you will offend your neighbour by putting up a fence back TO REPLACE the original one.
All you have to do is say your at last in the position to finance the fencing Company or purchasing of material, sorry about the fence being removed BUT happy to say it will now be replaced.

If he objects or hints he's un-happy you are putting up the fence again, then tell hime you are missing the secure environment the fence gave and the need for plant support as you like climbers.
On the other hand, he might be delighted your enclosing the yard, " Not have to make polite chat with her next door" LOL.

Haha, totally great points....I just cannot afford a fence this year. :(

See if you like this idea:

http://www.markiluxawnings.com/Markilux-790-Side-Awning

The least expensive option would probably be something a lot lighter than a fence, more like a trellis or post and wire system like grapes are grown on.
4 x 4 posts 8' apart with wire pulled tight and stapled to the posts. The wire can be vinyl coated (look at clothes line cable) Or it could be a wire mesh such as mesh with a 2" x 4" grid. Some of these are coated, too, and do not look too bad.
The key to making these last, however is good installation. Concrete for the posts, and plenty of a special kind of nail to staple the wire to the posts. It is a U shaped nail.

Then grow vines on it. You could grow a couple of different species, and have a blanket of flowers at different times of year.

Ditto: If the neighbor says anything explain that this is exactly the right exposure for... (name the vine you like).

All good ideas, thank you. You've given me some things to think about. We do have a tall iron trellis there, supported by 4x4 posts, but it's only about 3 feet across. Maybe I can find a way to continue the "theme" a few more feet and provide screening. I was thinking maybe sweet potato vine? Or autumn clematis? I have that on the garage and it is very dense and pretty.
I think I will also hang solid fabric "curtains" on the sides of the patio cover, as well. They can be decorative, but give me a place to "hide" when reading, etc.
At least they are nice neighbors; I've read some real horror stories here about stalker neighbors, lol.
Diana_K, I may try the wire and grow my new "favorite" vine that can only grow in that spot!
Attached is a photo from this morning, looking toward my neighbor's house at the trellis that is there already. It also shows the patio "tent" thing, currently without it's canvas cover and screens. The trellis is rather transparent, even with a climbing rose during summer, but maybe this is a starting point.....

museumgirl, these arched trellises could be linked together to form a fence:

http://www.mileskimball.com/buy-garden-arch-trellis-318049?icmp=search&w=trellis

I have several because I like them so much I keep getting more. They are a dull white color and the size is 7 ft. H x 14" D x 55" W. I’m not sure how much border you want to install but 6 pieces would create a 27 ½ ft. fence which would cost $19.99 x 6 = $119.94. I calculated the shipping so the grand total would be $137.92.

I hope these figures don't bore you, but I’m an MBA student so I like to calculate everything as I think it’s helpful. Since your name is museumgirl I figured you like beautiful things, and this fence is attractive but be warned it is flimsy. You could install it with concrete but it’s less expensive and faster to just dig holes and place the fence 10 inches in the ground which would still give you a fence that is over 6 ft. high. I called lumber shops and they say they sell plywood in 4 ft. pieces and you could get 4 x 7 pieces for less than $20; so seven pieces would be 28 ft. which would be enough for the 27 ½ ft. trellis fence, and that would be $140.

Then you would need to paint the trellis and fence a color or your choice, perhaps a shade that matches your home. I calculated you would need 2 gallons of paint for two coats to cover the trellis and 6 ft. x 28 ft. fence, and that would cost about $30. Painting supplies like a tarp, rollers/brushes, paint pan, etc. could be purchased for $30 also. Be sure to paint during the warm season because painting during winter could cause the paint to peel.

You could glue the fence to the trellis or drill holes in the plywood for attachments. The total cost of the 28 ft. fence including trellis, plywood, paint and supplies would be about $340. However, you could save more money (and time) by attaching reed or bamboo fencing. I prefer bamboo fencing because though reed is less expensive it’s much flimsier and I don’t expect it would last long in a Michigan storm. This link (scroll to reviews) has a lot of photos reviewers posted of the fences they put up with bamboo so you can get an idea of how it would look with different frames and posts:

http://www.homedepot.com/p/Backyard-X-Scapes-1-in-D-x-6-ft-H-x-8-ft-W-Natural-Rolled-Bamboo-Fence-HDD-BAME-BF05/100631152#customer_reviews

The bamboo is a nice yellow color that would match your house well. However, I recommend painting the white trellis a color that matches the bamboo. Spending $200 to $400 on this fence is much less expensive than paying $10,000 to have a wood fence built. And maybe the reason your neighbor talks so much is because he is nervous working in front of someone, so he might appreciate your building this fence and help you with the construction.

DoGooder

What about Degroot's Spire Arborvitae? They only grow 4' wide or so and you'd be able to trim it to keep it from the path. Not an immediate solution but a natural fence is always more beautiful than a man made IMO.

My computer wasn't letting me post responses....let's hope this works today.
Thanks, everyone, for your input.
There is really not enough room to plant anything as that garden bed, up against the property line, is only about 14 inches deep, and goes right up to the path. We need to keep that pathway clear as it is the only way in or out of the backyard, except through the garage, so we need it for meter reader, tree trimming, etc.
I think my solution for the time being, will be fabric curtains on the side of the tent. Easy, inexpensive, and not permanent. It will screen my view of that little piece of side garden, but I'll still have a view of the backyard and pond.

museumgirl, excellent idea! I notice that in the winter picture you posted later there is a structure like an awning cover over the patio and the curtains can by attached to that.

DoGooder

yes, we put the cover up in the spring, and it has screening on the sides, I can attach my curtains to that. I guess and start saving up for a fence. :) I would LOVE to plant a hedge someday, but because of the narrow space, roots of a HUGE oak, and some buried chunks of concrete, it would probably be a disaster. At least the curtains will give everyone involved a little privacy and we can still enjoy the garden.

museumgirl, yes the oak roots and concrete would make it more difficult to plant a hedge. Personally, I think a fence is the best idea because the 3 ft. space should enable a person to walk along the house easily. The only plants I would place there would be very narrow plants or a vine on a trellis. DoGooder