Limiting access to certain workstation users Windows 2008 standard

In sharing options of the drive you want to limit, remove permisions to everyone and add individualy add users that you want to acces it.

I've tried doing that but it will only let me limit it to local users not network users.

I don't understand why it doesn't work in your case. I always used that method in a couple of cases and never failed.
This would fail if the parent folder has full permisions, so the folder you are restricting also inherits the parents permisions, so check the parent folders and if so just remove completely permisions on parents and just set them on individual drives or folders.
Best practise is never to let complete drive acces, just individual folders to selected users or user groups.