I don't even think privacy laws are an issue here.

you have a logon notice that states these computers are for official business only, and may be monitored without notice

AND

have a notice/document/sgreement passed around to collect signatures.

computer privacy in the workplace is non-existant... look how long emails have to be saved. MS tried to scoot out from that requirement and got blasted by the courts.
_________________________
How to ask questions the smart way <-----------> Before you ask