You have extensive user account controls in XP, almost like in Win7, but defaults might have been changed if guest account can access as much as you claim.
Go to control panel to create new accounts, and just create the users that you need/want.
let them have ordinary user access (no admin rights), and the defaults should prevent them from installing almost all programs (some browsers are exceptions).
All portable apps can usually run on the guest account unless you disable it, and there are some very power-full portable apps that can mess with the registry, and the defaults - so I can't promise that it will be enough to solve your problems.
If you type "control userpasswords2" in the "run" in start menu - you get to the user account control panel - use right click for options to create new users etc.
Keep an eye out for the "advanced" buttons and tab's to see the options, and also try to right click on anything for various menu's. ;)