Using GPO to restrict a domain USERID to a specific set of machines

Small school environment. At no time does a student login without domain credentials. But in lower grades, all the kids in Kindergarten share the same USERID, which is K1.  I want it so that USERID K1 can ONLY be used on the PC's in room K1, where a teacher is watching.  

My problem: Upper school students have unique USERIDs, but logon around the school as K1, to disguise their surfing behavior.

I need to make it so that K1 can only be used on the PC's in room K1, and K2 can only be used on the PC's in K2. I do NOT need to do the reverse, which would be to make the PC's in rooom K1 accept only K1 as a logon id.  

I'm not finding the GPO that would let me control this.  
bobzilla51Asked:
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AmitConnect With a Mentor IT ArchitectCommented:
You can use Allow logon locally option in GPO.

http://support.microsoft.com/kb/247989

The user whom you want to login, add it to allow and for rest use deny option.
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bobzilla51Author Commented:
If I'm reading this correctly, this doesn't do what I need.
I don't want anyone to logon locally. I need the Domain controller to assign permissions and shared resources, etc.
I just want K1 USERID restricted to a certain set of machines.
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