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Well, you can remove write-access to all portions of the C drive except for "Documents and Settings\$USER". That'd be a way of limiting it to specifically that folder. From there, you could then impose a quota on the folder (no idea if that's possible in XP Home).
Is there a specific reason why you want to prevent the user from downloading files? If I know more, might be able to better help.
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Eat antimatter, Posleen-boy!
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