I worked as a L3 server tech for a nazi IT manager who made the work environment like that. I can't believe I toughed it for 3 years. Got out of there when I saw the opportunity though. The last year or so I was getting fed up of putting up with that crap so I was starting to look for ways out. My company had a job opening for the NOC and I applied. Been a year this month, and I don't regret it one bit.
-Your cubicle has windows so he/she can see you at all times -
this applied to me
-Must notify someone that you're going to the restroom -
not quite, but at one point he wanted us to keep a log of every little thing we do
-No internet access at all unless it's required to do your work -
one of the few things that was good. We were the websense admins. 
-3 tardies in a month and your bonus is docked 50% (lunches count too) -
we always got in before he did
-You will be tracked down if you left your desk unannounced for longer than normal -
this applied. The L2 tech got the worse though
-He/she will walk to your desk instead of calling just so he/she can observe what others are doing -
yep all the time. We used to call it "Soap boxing" He'd come in and soap box us for an hour or two. Almost every day.
-Must schedule your vacation days at the beginning of the year and your turn is based on seniority. -
was an on site contractor, so not his say. If it was his say we would not have any vacation. He'd always be furious when one of us was off. Seniority order for vacation is fairly standard though.
-You will be written up for any mistake no matter how minor -
pretty much. It was a big blame game there, and any mistake would be talked about and rediculed for years. I once changed a default printer, that would get brought up in meetings all the time. No matter what we did in what situation, it was always wrong in his eyes.