Umm not retarded bobwall, I just got finished building a chrooted jail for all of my users, I run a virtual hosting environment. Would you really want a bunch of people you don't know marauding aroung in your computer with access to a C compiler...ummmmm.....NO! And no they don't have access to other programs but in under 2 megs I give them a nice robust package of file utilities to use to their hearts content. I have achieved jailed ssh/sftp/ftp/and telnet services for them as well. If you'd like to learn how to set this up there is a wonderful tutorial on it here ---> http://www.tjw.org/chroot-login-HOWTO/
I would suggest chrooting ANY user you dont trust AND hardening your system with bastille, which is available here ----> http://www.bastille-linux.org/
I also wrote a full script for building a chroot, if u want it sdouble, just post, I'd be happy to pass it on.