I just double checked the fix I posted above on my windows XP system to make sure it works, and it works Perfect!
Also... beware that all a student needs to do is install another browser such as Firefox, Opera, Safari, Netscape, etc... to get around this. They can hide the icons and virtually everything except for the program files folder and no one will ever know it's there. I would get the school to invest in buying some sort of windows control software such as Fortres. To keep students from installing unwanted programs. Winguard pro is another good option and it is free, the only problem with it is that it is easily disabled. All you need to do is go into safe mode and uninstall it.