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How do I restrict Drive C: from user access in Server 2008 terminal server?

I am attempting to restrict user access to drive C: on my Windows Server 2008 terminal server via group policy, but when I enable the policy nobody can launch Windows explorer to access the network shares.  How can I restrict access to C: while allowing access to network resources?  When they try opening Windows explorer they get the following message:

2 Solutions
Using Group Policy Objects to hide specified drives

Pretty sure they can still enter the local path though and get there....

Either that, or deploy a shortcut to All Users to the File Server, or depending on how big of an environment, enable My Network Places....
All the settings are in the Group Policy for this.

There is also a file hack method so they can use mapped drives.
Find the info here.
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