I'm not an expert on this. But most installation programs are simply
exe's that perform copying and file creation operations. This isn't
much different from any other program. The exception being that some
installation programs will modify the registry.
There may be some way to restrict the running of msi files though. But
I doubt there's a way to prevent installation of any program, since an
installation exe may be ambiguous to any other regular exe that a use
would normally run.
By default a regular user can not install much. They may be able to install
a package in a directory where they have write permissions to but not
anything that will write to HKLM registry, to the program files folder, or
the system folder. If you have a need for great control then you should look
at upgrading to Windows XP Pro/W2003 and use Software Restriction Policies
to manage what software a user can install or run on their computer as shown
in the link below. --- Steve