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Prevent local administrator from installing software

I'm running a Windows 2003 server with all 2000/XP workstations.
Many of the software applications we use require the user to be a local admin.
Is there any way I can prevent users from installing applications or software by using Group Policy or remove them from local administrator but kipping all of their software running without needs of local administrator permissions.
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In a word no - if you don't want users to install software, don't make them local administrators. Properly written applications should not require users to be admins.
Well said... Even the poorly written apps can be made to function as a limited user, by identifying the areas where the users need access to, using the following tools....

RegMon for Windows v7.04

FileMon for Windows v7.04

Set the filter at the top to highlight "access denied", and and try and recreate the errors....Then go to these and look for the red, and it will tell you where the permissions are shot....

Or even use the new and improved utility form Sysinternals, that contains them both....

Process Monitor v1.22
Another alternative is to apply the compatws template which relaxes some of the user restrictions (at the expense of security it has to be said).

See http://technet2.microsoft.com/windowsserver/en/library/e4026462-791d-43ff-adb1-ae074feb37ea1033.mspx?mfr=true
for details - the links at the bottom of this page deal with how to apply it.
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