Windows policy editor

I'm not too sure if this is the right tool for the job, or if it is the best way, so I'm asking here for advice and suggestions.

Currently we have a lab of PC which are pretty locked down, primarily using allot of registry hacks. The users are permitted to use only certain programs and have zero access to the drive - heck they can't even right click!
Anyways a batch of new PCs has been allocated to replace these aging 4 year old PCs and I've been tasked with creating an image for them, and while I do have notes from the previous images creator there have been some requests for changes that are been looked at.
Essentially rather then having just one generic account they want to permit these people to log into the domain (NT not Active Directory) but to have all these users restricted - the good news is that everyone who logs in will be limited; the bad news is that I have no access to the domain controller.

So my question is can I alter the "Default User" settings and create an extremely controlled environment?
Is policy editor the right way around doing this?
If not what is?
And irregardless of the solution is there a book / site to learn from?
Thanks

Is the OS Windows NT or Windows XP. There is a Group Policy Editor in Windows 2000 and XP (gpedit.msc in the run command). This allows you to restrict current user or the entire system and has all of the registry hacks that probably have been performed with more description and information.

Doh!
The OS is Windows 2000.

Mike, can you point me towards a guide on using this? I not quite ready to go breaking another PC today...

Remove the hard drives entirely, stick a KNOPPIX live CD into the optical drives, and glue the doors of those shut.

Cheers

Mark, I'd love todo that! But alas these need to be 'doze machines - though Citrix has been mentioned but it's a bit late in the game for that.

I don't have a guide but here are some places to start.

http://www.theeldergeek.com/group_policy_editor.htm

Official Microsoft Website: http://support.microsoft.com/default.aspx?scid=kb;en-us;307882