Trust me, students not knowing how to navigate a file-system is highly preferable ;D.
I remember back when my school allowed regular old users access to the registry if they went through the file-browser into the Windows folder it was a disaster. At first, only a few of us knew about it, and cheating in Minesweeper games ran rampant. Then some doucebag found out and thought it would be a great idea to go around and start deleting random entries on multiple computers.
I'd be pretty easy just to lock users out of everything but a small area where they can store some files, preferably on a server instead of a local machine.
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