you can always install a hardware keycapture
http://www.thinkgeek.com/gadgets/electronic/5a05/
Unless you install a real Internet gateway computer, you're going to
find it hard to monitor what happens on a computer.
I can monitor most sites with a firewall such as smoothwall.org. It
runs on a separate computer that provides internet to the rest of the
LAN.
As an aside, I've turned on my logging on my router and can see all
incoming and outgoing traffic through the router's logging program,
but since it's all IP traffic, it's not necessarily very user
friendly.
Besides all this, if you can't install software on your home's
workstations, even if you put a proxy server on your network that
monitors connections, you'll have to make certain that your users
aren't going to bypass all of that and start using their own proxies
outside of your LAN.
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