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Windows 7 Steady State Alternative

I work at a school and I have been using Windows Steady State to lock down our computer.  I especially like the ability to lock down a profile so it resets each time the user logs off and the ability to block all .exe files not installed in the Program Files or Windows folders (which blocks proxy programs, games, etc.).  Recently, we started getting new machines with Windows 7 and Steady State does not work.  Any ideas for Steady State alternatives, preferably free.  I can use GPO's for most of the other Steady State features, but the .exe blocking and clean profile is something I don't know how to replicate.
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about programs this might be of help:
and profiles:
search Microsoft for Mandatory profiles!
Good luck!
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I will check this out tomorrow, when I got back into school.

Harryhelp- the link you sent was for a Windows Server environment- these machine are NOT on a domain.  
It should also work off of a domain, see below (pls note this is designed for XP, but should work fine on Windows 7)