setup of small network with restricted and monitored access to internet

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First of all i would like to say that i have gone through many similar questions but either they r diverted to PM and answer is not on the forum or it is not understandable. Though i am IT guy but purely software development and research. No extensive exposure of networking but i am asked to do the job. so here is my question:

1. It is small office network having 5 PC's connected through router.
2. Out of 5 PCs, only one is connected to internet through DSL and act as internet provider (ICS) for other PCs. It has 2 LAN Cards.
3. Any employee can access internet through any of remaining 4 PCs.
4. The number of client PCs may increase in future.
5. I am asked to develop the network in such a way that who so ever connect to internet through any PC, his all activities could be monitored and a report can be generated on demand showing from which PC he logged in, what all websites he accessed and when he logged off etc.
6. Also, some websites (like social networking sites) should be blocked and not accessable by anyone.
7. In addition chatting softwartes like MSN, Yahoo messenger etc. could also be blocked.
Any help in this regard will be highly appreciated. Thanks in advance
 
I would load linux on the pc that has the 2 nic cards. You can load a prebuilt firewall image that has most the tools preloaded. There are a couple of ways to do what you want but I would use a proxy (squid) on the device running in transparent mode. You can set it to require the user to authenticate before it allows access. It also has good logging and restrictions. Whatever the proxy cannot do I am a sure the firewall can.
 

uflibra

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May 2, 2013
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THanks for the answer. can you recommend any linux distro for it? and any recommended firewall? thanks again.