If it were me, I'd think seriously about keeping the two groups on physically seperate subnets. That way you could control the access of the students at the router from their subnet. Because you actually control what's on the wire, they cannot gain privileged access by changing IPs. You can use any content filters you want at the router, and block any illegal, out of range IP addresses from getting anything.
There should be no reason why you can't use class a, b or c networks with e-smith as long as you specify the correct netmask to go along with it. I haven't tried this myself, but because it's based on standard redhat, should be no problem.
Jonathan