Stop users from creating folders on their local c drives

I have a server 2008 ad environment, the clients don't have admin access on their desktops but are able to create folders on their c drives and i want to stop them from being able to do this, please advise.
Daniel ForresterDirectorAsked:
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Best way to stop users from moving files and folders to the C: drive is through communication.  Letting them know that it is against company policy, and all files stored there will not be migrated over during warranty exchange. All files must be placed in the user folder.
You might also try editing the group policy.   User Configuration -> Policies -> Administrative Templates -> Windows Components -> Windows Explorer -> Prevent access to drives from My Computer: C
David Johnson, CD, MVPOwnerCommented:
create a restricted drives gpo

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There is also some applications that you could look into.  Example:
use the File System GPO here to set this.

In a computer policy set the object name to %systemdrive%\ we then set the permissions below.

These two radio buttons are set: 'Configure this file or folder then' and 'Propogate inheritable permissions to all subfolders and files'.

SYSTEM: Full Control
Administrators: Full Control
Users: Read, List folder contents and Read and Execute (the basic read permissions)

Remember to try on a test machine first.
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Windows Server 2008

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