I worked at a small company and got sick of the monitoring/time-wasting complaints from managers. Installed a squid proxy and published the daily reports on an internal intranet page that everyone in the company could view. There was an explicit "internet is for work use only" policy, so there was no expectation of privacy, and I gave everyone in the company a lot of notice that it was happening. Our #1 user was very into Days-of-our-lives forum sites, and the sales guys still went to porn sites, but at least I wasn't the internet police any more.