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To acheive true privacy you'd need separate ethernet interfaces.
But you could get most of the way there by just putting a cheap switch between the users and the network. At least then they can't see each other's traffic.
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I used Smoothwall intially but it's just a basic firewall/router. It doesn't have any of servers like mail and web like ClarkConnect.
The guys at Smoothwall would of course point out that the lack of mail/webservers on their firewall is in fact a feature 
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Remind me to change my signature to something more interesting someday