I second the rec for DG. A school I help out from time to time, had an "appliance" called team-internet, running a mystery linux distro. I installed e-smith v5, with dansguardian on a spare pc, and they have been thrilled with it. I actually went with the source install, which is not as easy as Stephen's but the web interface wasn't important. The system has been up 23 days (i just checked) and going strong.
Previously, they were using the commercial version of sitefilter, which had expired. Additionally, the teaminternet was not a very reliable distro from my point of view. Worst of all, when they switched to DSL from ISDN, the support group at the mfr. wouldn't give me the root password to install rp-pppoe. I had to loan them a linksys router just to get connected. Way more complicated than necessary.
Now, if I can get them to convert the $$$ they used to spend into a service contract for Mitel, I can get them the whole thing, so to speak.