It is important to realize that many of the problems you mention are 
not necessarily the result of "inappropriate" Internet use.  Many are 
sometimes unavoidable, unfortunately.  I have known church-going 
grannies to get their computers infested, and helped them.

User savvy is a key issue.  Too many people are taken in by pop-
ups warning them that their computer may be compromised by 
viruses, spyware and so forth and offering a solution with a simple 
click.  Closing these pop-ups from the task bar is usually the best 
option.  A better option is to begin using Firefox, which eliminates 
pop-up and also to disable messenger agents and "system 
messages."

Many problems also come from email.  Users need to learn not to 
open unexpected attachments and generally to stay away from 
unfamiliar or unusual looking emails.  Simply reading an email is 
safe, but many email programs will automatically open picture 
attachments and such.  Configuring email programs to leave 
attachments unopened by default is a very good idea.  I am 
unaware of Trojans and such that launch without opening an 
attachment or following a link.

Rather than coming up with restrictive policies, consider user 
education.

I also would include use of legitimate "anti-malware" programs such 
as Spybot Search & Destroy, Ad-Aware, Spyware Blaster, X-
cleaner, CWshredder and BugOff.  Each of these are free programs 
and available for safe download.

Unfortunately, the attacks coming in from the Internet are 
proliferating too quickly for any one program to keep up, using a 
combination of programs is a good, though not fool proof, strategy.  
I find running a couple of these each week to be a good idea.  Just 
because the one program finds nothing doesn't mean there's not a 
problem.

A firewall should be installed on each computer and users trained 
also.  Microsoft includes one in it's SP2 update to XP; however, 
Zonelabs ZoneAlarm--also free--is probably a better option given 
Microsoft's history of security problems.

Note that while there are many people lobbing bombs through the 
Internet, there are also many people developing good defensive 
tools.  Many of the best of those tools are free.

I have helped many people and organizations with problems of this 
sort.  I could easily forward a new message that would include links 
to the software that I mention above.  I could also possibly create a 
simple web page with links.  Please reply if you think this would be 
helpful.

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