A Group Policy can be created to limit the functionality of IE. If you are using a Windows 2000 Active Directory you will need to download an update to get this functionality to control IE. If you are using Windows 2003 the policies will already exist.
Assigning the policy is the next step. You can either create the policy and assign it to the domain and then adjust the permissions on the policy so that it is only applied to a group or the individual user. I find this to get complex when you have multiple policies, making it a little more difficult to determine who get which policy. Seeing as in IT we don’t like to make things more difficult…you might consider creating an Organization Unit (OU) for this generic user and others like it (perhaps service accounts). Then apply the policy specifically to that OU.