XP Local Computer Policies

I did this on some Novell machines because users were putting on all kinds of software and spyware and my co-worker wasn't too happy but set up the group policy logged in has administrator then save it to the desktop so you can reach it. You have to go to c:\Windows\System32\GroupPolicy\ and properties. Under the security tab, change the read permission from allow to deny. Make sure not to take away the logout permission away from administrator. Once you logout and login the administrator rights will return and the policy will affect the user. Read this page:
http://www.theeldergeek.com/gp07.htm I hope this is what you're looking for.