The debate about whether to "hide" during government school hours continues to rage in many homeschooling circles. I've already addressed that topic here
http://www.homeschoolblogger.com/EclecticBibliophile/23343/
but I wanted to add another suggestion that has worked well for my family.
When we moved to a new town a few years ago, one of the first things I did was go around and meet all the neighbors on our cul-de-sac (about 10 families) and get a bit acquainted. I told them that we were homeschooling, so they might see my kids outdoors at what seemed like unusual hours. No one seemed to have a problem with that. I think it helped to address the issue up front before they had questions.
Mary Jo