Disable internet use via group policy?

I'm currently working on the administration of a small Windows server based
network with about 7 clients and around 20 users. All clients are running
Windows XP home with SP2 and IE6. The domain is based around a Windows 2003
server. I was asked today to limit the ability to use internet explorer and
the internet in general to some of the users. I think that the only way to
somewhat accomplish this would be via group policy. Can anyone lead me in the
right direction to limiting internet access to some users? or if someone else
has a different approach without using group policy, I'm up for it as well.

Thanks.
.

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