I have an old P300 box that I use as a Firewall. I run
Endian Firewall on it. It is a free firewall that is essssentially a special build of Linux with the required packages etc. It is driven via a web interface from your PC. Once it is set-up, it can sit under a desk with no monitor, keyboard or mouse.
More specific to your requirements, it logs
everything!. Not only does it log, but it has parental filters, antivirus, spam filtering, acts as a DHCP server .... the list goes on. It is a great little package - and FREE.
Not only can you monitor via the logs, but you can also assign users specific access at certain times, specify maximum download sizes and time resictions. (I don't use any of these features ... yet)
To top it all off, it is easy to install and setup. Just boot from the burned CD and answer the questions. I did an upgrade of mine to the latest version yesterday afternoon. Installation took around 15mins and another 30mins to configure.
In terms of hardware, it will run on just about anything that you haven't thrown out yet. Just have to have at least 2 network cards.
The only downside is it may turn you into a internet usage nazi!
If you have the hardware, I can help you build it.
Hope this helps

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