A neighborhood is a group of network services that have a logical grouping. They can share a TCP/IP domain or subdomain, (apple.com, or euro.apple.com)You can add your own neighborhoods. The ones you add will show up in the Favorites folder as a neighborhood location-type Internet location file. An apple.com neighborhood is installed by default.
Mac OS 9 computers can only see Personal Web Sharing and File Sharing of other Mac OS 9 computers (SLP version 1.1). Mac OS 8.5 or Mac OS 8.6 computers can only see other services with the same OS.
If your network does not have multi-cast-enabled routers, then you might only see services on your TCP/IP subnet.