Hi all, may I know the difference between domain group policy and domain controller policy. If I want to restrict a user who is accessing the local drives and CD drive of a client machine and internet. How can I prevent the user/user. Thanks varughese abraham.

The Domain GPO normally applies to computers and user within the domain while the Domain Controller GPO is usually only applied to the Domain Controller's in the domain.

Using Group Policy Objects to hide specified drives (http://support.microsoft.com/kb/231289)
This will walk you through accomplishing what you want with restricting drives.