The no-cost way is to setup IE content advisor by adding and using the "noaccess" ratings file.
Here is the Microsoft KB that tells you how to do this - don't worry about it saying IE5 - it works the same for IE7 - just follow the instructions for Win 2000/NT for were to put the noaccess.rat file (windows/system32).
http://support.microsoft.c
I've used this in the past to lock down IE on computers that were being used inappropriately. I hope this is what you are looking for.
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by: war1Posted on 2007-09-03 at 19:50:27ID: 19822939
Greetings DayHelper !
om/kb/2679 30
You can configure IE7 content advisor to block all sites except a couple
http://support.microsoft.c
The instruction is for IE6. but applies to IE7.
Best wishes, war1