Let's take go back, for a moment, to the days when your neighbour was using his VCR with an analogue TV set. Each device had its own (analogue) TV tuner built into it, so you neighbour could record one channel while watching another.
Now let's move forward to the current position where your neighbour still has his VCR (with only an analogue tuner inside it), together with a TV set (with a digital tuner inside it). Assuming that your neighbour wants to record from Freeview (rather than from the five analogue channels - if they're still available in your area) he'll have to use the tuner inside the TV to do so. (That assumes that the TV is capable of feeding the output from its tuner to an external device. Most modern sets seem to be able to do so, but it might be unwise to assume that they all can). So he'll only be able to record the same channel which the TV is receiving.
Since the actual 'reception', of the signal to be recorded, is to be done by the TV's tuner, it's essential that the TV is switched on and tuned to the appropriate channel. The VCR won't be recording a signal from its own tuner, so it must not be set to record from any numbered channel on its handset. Instead it needs to be set to record from 'AV'. (Some VCRs use alternative labelling instead of 'AV'. If there's no 'AV' button on the handset, look for 'AV1', 'Ext', 'Ext1', 'Aux' or 'Aux1'). Timer setting should, as normal, be set from the VCRs handset.
Chris