I do appreciate everyone's input into this matter. As I stated before I have stepped out of the situation and haven't noticed any further danger so I'm keeping my nose out of for the time being.
Lord Fantasius - Out of total respect you have assumed a huge amount of information for not seeing the situation first hand. I didn't take personal offense to any of it - I'm just trying to clear the air without making this a debate so I hope it is taken with a grain of salt in the way this is intended. I will go point to point as you so nicely organized your thoughts so that I don't get all jumbled up
1) You are correct that I didn't mention anything about last winter or early spring. However, the family has lived here at least 3 1/2 years as they were here when we moved in. You assumed way too much here. Just because the history I mentioned doesn't include our whole history doesn't mean they are new to the neighborhood. I just started seeing him our with adult supervision this summer. My guess is probably right as he was turning three or so since he was still in diapers (not that it's not possible he could have been older - not making too quick of judgments on that.) And any earlier out by himself would have been completely silly as he would have been closer to baby stage instead of preschool - he still rides on his trike sometimes even. Assumption #1 - not true.
2) Yes, I did state that we live down the street from the school but not directly on the street where the front doors are but along the bus route and where parents drive and park to pick up the school age children - there is NOT a reduced speed limit. Assumption #2 - not true. You also assumed that we/they moved here simply to save on transportation to school. Completely untrue - like I noted this is a small town and our school is simply the kindergarten and 1st grade before they move to another school. She also has a couple of older children and the furthest they will even go to school before 5th grade is 2 miles. Assumption #3 - not true.
3) I didn't mention the father, because he is not around while this is occurring (during the day). He lives there but is at work during the normal 8-5 work day. Assumption #4 - not true.
4) You are correct on this assumption. This neighbor has made it abundantly clear that she has NO interest in talking casually or otherwise to our neighborhood, thus the reason why I felt weird going to her in a holy-art-thou attitude (which is how it would have come across no matter how PC I did it) and tell her personally how I think her kid should be.
5) From everything I know about the family, which I do admit isn't TONS, they have lived in our small town for a long time. And as far as I'm concerned, even though I know this isn't the practice of everyone, but when a police officer comes to your door, you answer it unless you feel there is something they might be confronting you about. Why not answer it if you don't feel guilty about something. Might be wrong here and I'll admit to maybe being of different mind from others on this.
6) I just don't accept this reasoning AT ALL. My hubby is a VERY devoted hubby and father who spends every waking minute at home with me and the girls, but he also is working 2 jobs right now just so I can stay home with our kiddos.

This week he was home only from 11:30pm-7:00 am 4 days this week which leaves me to do everything with our two kids and keeping our house into some semblance of order and I AM TIRED TOO!!! But I take time to go out with my kids and play and protect them from the outside world as much as I can without going overboard. Assumption #6 I consider completely untrue. Others may think differently though I realize.
7) I agree, thank God they are home at night and supposedly being sent to bed. However, that DOES NOT negate the issue of safety during the day. Assumption #7 - untrue.
8) see point #6.
9) See points above. You assumed WAAAAYYY to much with this.
10) Again, I stated that although I DON'T condone being outside with no clothes or shoes when it's chilly, I pointed out in my prior post my main concern way his safety being outside by himself.
11) I was lucky to get out of the boy that he was cold. He acted scared when I asked him that and I didn't want to be the "freaky stranger neighbor" asking too many questions.
12) I never said anything about him getting sick (I don't think)...again, that wasn't the main point.
13) Yes, the highway is a main concern. However, there is NO GUARDRAIL. Our street opens up right onto the highway from the neighbors yards in a residential area of a rural community, which yes means the speeds are down, but also means there are TONS of semis, buses, tractors, cars, etc. speeding past about 50 feet from his front driveway. As far as him knowing not to go out into the road, I have a 4 1/2 yr old DD that KNOWS to look both ways, etc but she is still just 4 1/2 yrs old - no yet old enough that she doesn't have moments when she forgets the "rules". I'll be risking and take the liberties of making some assumptions that you never know when a kid will forget what he is doing. That's not even talking about the chances that are still out there for loonies, injury while he's out by himself and can't get him mom, etc that are out there.
As far as the mom's day out thing goes, I have invited them several times to church events through her older child and have been turned down everytime. Would do the same with this program but it is limited to a certain number of kids (not just our church kids) and that number met everyday as it is. Something our church is working on to increase but there are state laws we have to abide by.
Like you said, it was TOO MUCH to go on without being here face to face so why did you attempt to do it????
As for the rest of the posters including Lord Fantasius, thanks for your opinions. As I stated above, I took the action I still stand behind and will keep in mind personal contact with the mom should I notice anything else. I don't want to be judgmental or jump to any conclusions that aren't there. So, no more action from me at this time.
Now, let's all let the debate rest as we have found on these boards, we probably won't change anyone's viewpoints or opinions and everyone's are just as valid as ours as long as they are informed.
I'm done with this and will not fall into a debate any further. In my opinion, my question has been answered on many good points around the board and I would hate for anyone to get their feelings hurt over a conversation that hopefully is now null and void. Thanks all you DISers!
