How to monitor a users access to server data on a network

We have a network running an SBS2008 server behind a firewall with approximately 10 employees with 10 Windows 7 Pro workstations

We have one employee that was recently placed on a 60 day probationary period because he was spending too much time on the internet and doing side jobs and not spending reasonable time on his work

-      The owner of the company has installed a web watcher type program that monitors the activities on his PC. She wants to be cautious because she does not want to invade the employees privacy and personal emails.  The employee has been made aware that this program has been installed on his workstation and that he’s being monitored.
-      The owner does not want to fire the employee and hopes the employee does better.
-      The owner’s concern is that she has found that the employee is using the companies software and templates for his side jobs. She is concerned that data may be stolen from the office
-      We are also looking to totally disable the internet access on his workstation with his knowledge

I know there are options to enable event  logs to record every time a user accesses, creates and closes a file on the server. That might be overkill and a lot of logs to go thru.

Is there an easier way to log what files are access and opened, closed or even deleted?

Any help would be appreciated.
Andreas GieryicComputer Networking, OwnerAsked:
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NVITEnd-user supportCommented:
Either do it by examing logs as you mentioned.

In case you need one, here is a guide, File Server Auditing Quick Reference Guide.

A step-by-step by Microsoft: Configuring Audit Policies

Or, get a program to do it for you. Some are:
- Netwrix Auditor for File Servers
- LepideAuditor for File Server

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Iradat SiddiquiCommented:
Use some workstation monitoring tools like  ActivTrak.
Andreas GieryicComputer Networking, OwnerAuthor Commented:
I'm already using ActiTrak. It works great.
Iradat SiddiquiCommented:
I hope All the functionalities are there in ActivTrak , Please let me know what additional features you are looking beyond that.
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Windows Server 2008

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