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Oh and also check the box that says &quot;bypass proxy for local addresses&quot; this will still allow lan access via hostname.
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The only other way to really block the sites is to use a firewall or router with content filtering. SonicWall has a great solution for this. 
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If you are on a budget and cannot afford a watchguard or sonicwall and have an extra computer laying around you could try untangle. &nbsp;This is a free linux firewall/webfilter product.<br />
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<a href="http://www.untangle.com/" rel="ugc">http://www.untangle.com/</a><br />

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zigafu2--Another way (for free) &nbsp; <a href="http://support.microsoft.com/?id=267930" rel="ugc">http://support.microsoft.com/?id=267930</a><br />

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We have a client using IE 7.0 who needs to block internet access except to a small list of sites. &nbsp;We tried content advisor, but it randomly let some through (blocked google, myspace, and cnn.com, but allowed yahoo and aol.com).<br />
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Does anyone know of a good way in IE to do this?
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We have a client using IE 7.0 who needs to block internet access except to a small list of sites.  We tried content advisor, but it randomly let some through (blocked google, myspace, and cnn.com, but allowed yahoo and aol.com).

Does anyone know of a good way in IE to do this?

Block Internet access except for a short list of sites

Networking is the process of connecting computing devices, peripherals and terminals together through a system that uses wiring, cabling or radio waves that enable their users to communicate, share information and interact over distances. Often associated are issues regarding operating systems, hardware and equipment, cloud and virtual networking, protocols, architecture, storage and management.

Networking

Web browsers are applications used primarily to display documents, files and media from the Internet, identified by a Uniform Resource Identifier (URI) that can be a page, image, video or other file. Some browsers require the use of add-ons or extensions to safely render the information they receive; others have systems built into them to perform the same functions.