Guess what? Too late!
There are a bunch of parental controls built into IE and Firefox. My kids can't go anywhere I don't let them and it is password controlled and they have their own limited profiles on a shared PC in a public space (the lounge).
Genie's out of the bottle now so you'll have to do the "speech" and discuss limits and start of by establishing a trust relationship with consequences if the trust is broken.
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