ok for users to be local admins?

Hi,
We’d like for users to be able to install certain software on their own as well as run certain scripts (which we write for them) that may “fix” certain things (Windows loses the file association for jpg, etc). However, if they’re not a localadmin on their Win2k workstation, it becomes a problem. Is it a big security issue to make all users local admins? How do most people handle this?

Thanks.