Walls and Ceilings - soundproofing bedroom

Ever since I moved in to my spec home 12 years ago (I never did get the dream home built and with the cost of building materials now, I probably never will build the dream home), I have had difficulty sleeping because of the noise. Between the neighbor's dogs/lawnmower/AC compressor, things are pretty noisy. I have two windows facing the neighbors. The walls have 2x4 studs. I was thinking of placing another wall along the exterior wall using either 1" or 2" studs and packing it with some type of sound deadening material. I probably would also have to replace the windows and blow more insulation in the ceiling. I imagine that there are sound-deadening materials available that would soundproof my bedroom more. Before I undertake such an expensive project, I would really appreciate some advice. I occasionally have to work nights and the days are really difficult. Thanks for the advice.

Heavy drapes and if you like tapestries, hang a couple 1/2" off the wall.
Or, there are a number of "sound soak" products which can be installed on resilient channel

My husband works nights as well, and his co-workers have told him that insulating the interior walls of your bedroom will go a long way to helping reduce noise. But since it sounds like your noise is coming from outside the house, I don't know if that helps any.

Theatre curtains might help - they are super heavy duty. We had some sound leaking in through an exterior door and hung two sets of heavy floor to ceiling curtains in front of the door - helped dramatically.