Well, i have to say that I'd be iritated if a company I worked for wanted to decide what I could and couldn't see, but there definitly are justifications for it...

When I worked at the tech support desk for a Navy base one summer, I heard plenty of gossip. One of the big issues was people being caught looking at porn at work. If you're caught, it's basicaly sexual harasment for the parties witnessing it, and grounds to be fired. (and being fired from a government job is next to impossible). In a lot of ways you'd be doing people a favor by removing this temptation.

Perhaps you could sugest an anoynoymous site delist request? That way people wouldn't feel too embaraseed requesting a page that was borderline.

Another issue is that with the proxy I run I find it necessary to turn off every day or two to access something I actualy want to see. I realize it's rather active in filtering, but all proxy's screw things up in some way or the other at some time, as you discovered when you tried to implement your own hosts.txt file for yourself, I beleive. Is there a quick way for a user to get around the add-killing code?

I think an issue that should be stated is if this is censorship or simply banner-add killing. As an employer, you're perfectly within your rights to tell people what they can and can not do at work, but you should agree on a policy and stick to it.

Matthew