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If you're running Windows 2000, I'm sure there are a billion and one ways of achieving this through the operating system and its components. Start by poking around in Group Policy. Alternatively, if your router is on your domain (i.e. using ISA or something), you can set up a domain authenticated proxy and apply policy there thus enabling you to, say, transparently block downloads to certain accounts but not others, as well as the possibility of an Internet filtering system. Having a physical network device stopping the downloads is as near to fool-proof as you can get, and as iignotus hinted at, schools are the sorts of places where people trying to get round your measures would be a particular problem.
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