To figure out how noise is affecting you, start with the noise level from real-world distance to your target and add the noise level from any other applicable situations, then subtract any noise reduction you are using.
If the area noise is around you, then you take the penalty. If it's around them, you don't. Should they take any matrix actions, they'll have a penalty based on their surroundings. Keep in mind that noise does not penalize defense or resistance tests.
For example:
You're in the Ork Underground (let's say a Noise rating of 3) trying to steal a file from a cyberdeck a couple hundred meters away (1 Noise). The decker you're stealing from is in a building with R2 Wireless Negating wallpaper. You take the Noise from distance (1) and add the Noise from your surroundings (3) for a total of 4. If the decker realized you were hacking them and tried to data spike you, they would do the same in reverse, for a total of 3 Noise on their end.
It may seem a bit confusing, but I'm fairly certain that's how it works. If someone else wants to chime in to say why I'm wrong, go for it. I'll admit it doesn't make a load of sense that the wallpaper would only stop things going out and not coming in... That might be enough proof to say I'm wrong.