Hi Lisa,
The setting you used will only clear MOST of the temporary internet files. All the cookies will remain until you delete them. Files under C:\Windows\Temp will not be affected. Also, if you use the pull down list in IE for sites that weretyped in or check the History file, those sites will still be listed for as long as the History setting says to keep them as in Answer 1's response. Setting the clear history to zero will remove those records every time you close IE.
To also remove the Cookies, you can choose to accept none or set a batch file that will clear the files each time you reboot the PC. I did this on a user's PC that created a lot of temp files with her scanner use. I added a line to the AUTOEXEC.BAT to clear the temp folder every time she reboots the PC.
Add: "DELTREE /Y C:\WINDOWS\TEMP\*.*" without the quotations and "DELTREE /Y C:\WINDOWS\COOKIES|*.*" without the quotations.
If you're doing this to free up space on the Hard Drive, this will help. Ifyou're worried about someone seeing your internet usage, this will also work if you're not at work going through a firewall where all usage can be recorded there. Just a thought...
Hope this helps.