Please Setup suggestion

Win 7 64 bit
MSE
Windows Firewall
Zemana Antilogger Free
EMET 3.0
Panda USB Vaccine

Most afraid of USB malware, because here a lot of Student insert their USB in this PC.

 

I would switch out MSE for something with higher detection rates. I like MSE for it's simplicity; it's great for people who don't know a lot about computers. The big "scan" button is good and there aren't many other things to confuse people. But, the detection rates (according to a couple reputable antivirus test companies) are fairly low. Have you tried Avast? It seems to be the "hot" free av right now. Also, if you're afraid of USB malware, why not run an execution control program(EXE Radar Pro or Applocker if you have a version of Windows that supports it)? Whitelist everything in C:\Windows and %ProgramFiles% and then make sure that the account they use can't move anything into those folders. Or, you could use a program like Shadow Defender and set it to always boot into shadow mode so that even if the computer does get infected, a reboot will wipe it clean. Then just tell the students to restart the computer when they are done using it.