Vista guide for Blocking Device Installation
These settings are located in
Computer Configuration\Administrative Templates\System\Device Installation. Even you can do this from registry setting and also from windows vista group policy.
This windows vista setting allows / restricts devices from being installed on computers within your network. With this level of control you will be able to establish and enforce policy settings that can block access to USB drivers, CD-RW or DVD-RW drivers and other types of removable media.
By this you can create a policy that says whether or not you can put a USB hard drive in your machine. I can set it up so it’s only read access. Lots of corporations want people to use USB storage devices but don’t want them to take data out. Coupled with the intelligent firewall [in Vista], you can really block Internet access so machines are only used in the context and domain that you like.
Without control over the installation and use of removable devices, users can introduce viruses, worms, and other malicious applications using these media or user can steal important data.