Proxy server needed to monitor users internet traffic

I have a small client that has about 5 workstations and a Windows XP workstation that is used as a back-up server.

The client wants to be able to monitor what their employees are doing on the internet. For example, they want to be able to see if John or Jane Doe have been spending too many hours on Facebook or whatever. I am thinking of a proxy server but not sure which way to go with it or what product is good. This is a Microsoft Windows shop. There is no actual server but I can install a small cheap one if need be. Please let me know ASAP.

Thanks in advance !! :-)
PAULADAMSJRAsked:
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giltjrCommented:
Squid, http://www.squid-cache.org/.

It's free.  Does caching and reporting.  Has a few add on programs can do do URL filtering and content filtering.

However, see how long somebody is on web site, is fairly difficult.  You could go site and from the proxy's point of view it may take just a few seconds to download the web page, but the person may sit on that page reading it for an hour.
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PAULADAMSJRAuthor Commented:
I forgot to add that they ( as everyone is) are on a very tight budget.
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Darius GhassemCommented:
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Russell_VenableCommented:
How thorough must this proxy be? You should be made aware that logging personal information from proxy traffic even from a business perspective without consent of the user being monitored is a violation to privacy rules and other laws. If you want to log the sites there visiting that's not a problem. It just gets complicated when it's a uncontrolled collection of information is where you can run into problems.

You could always buy a hardware firewall that sits at the front of the network and logs http dns and queries. That might meet your specifications and follow the laws in your country.
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PAULADAMSJRAuthor Commented:
When they login to the domain, they acknowledge their concent and agreement of all computer activity including their internet content being recorded and randomly monitored. So that's a non-issue. Thank you for the insite though.

PA~
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PAULADAMSJRAuthor Commented:
this solution was perfect. thank you all for your input. It was all valued. PA~
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