We did much the same at my last job. We pulled the power for the Floppy and enabled the "allocate cd" option under C2 security for the cd. That 'mostly' kept the users from installing any software. It was a classified data system though and really our prime concern was eliminating ways for the user to offload any data.
In this case, using the Device Manager, I could just disable the device and that would suffice. When the admin logged in it wouln't take more than a couple clicks to enable the device. A minor compromise and one we're basically willing to live with. However, the only negative aspect of this would be if the Admin forgot to disable it when he logged out - then the user would have access: and that is totally unacceptable in the current environment.
So that is why I am trying to find a way to automate the process. So that when an admin logs in - the CDROM and Floppy are available. When a user logs in they are not. Whether it is using Kixtart to enable/disable it with scripting or to write a vbscript to do much the same.
Still looking ... commercially I found the program DEVICELOCK which is nice. Able to lock any device: LPT port, Floppy, CD, ZIP, Serial port, etc. There are several other applications that incorporate CD/Floppy locking as well. Just trying to use the resources at hand before going that path.
Any other ideas folks?