You have to block access either at the client or server, and you can either do it via fancy networking or via software (proxy usually)
So, setup a proxy (squid isn't too bad, especially on smoothwall. Not sure if you can smoothwall a non gateway type situation) and block access there, or figure out how to get windows to block certain IP's at it's gateway (cinche in linux, but windows lacks the robust networking tools like IPTables)