Amy was asking on a newsgroup about locking down Internet Explorer for some clients on the list the other day so here is the short of it: There is no quick GPO for doing this effectively, but short of building your own IE with Connection Kit there are a few quick registry entries which will keep a lot of the novices out of trouble:
To remove Address Bars:
Set NoAddressBar = 1 in HKEY_CURRENT_USER\Software\Policies\Microsoft\Internet Explorer\Toolbars\Restrictions
Set NoBandCustomize = 1 in HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Policies\Explorer
Additionally, it might help to remove the other shortcuts and context menu items.
Nuke entries in here:
HKEY_CURRENT_USER\Software\Microsoft\Internet Explorer\MenuExt
Take a look inside those registry entries, there are quite a few things you can remove from IE to make it as friendly (or unfriendly) as you need.