Rony,
I would suggest using openDNS server. It should be of some help. I can't comment much on the above setup you have mentioned, haven't seen or setup one. Also, there probably would be a switch for local networking between computers and that switch should probably have some sort of a WAN switch.
If one of the computers can be directly connected to the internet (MTNL router) and if it could run a proxy server for serving internet to other computers, that should do some good. Ofcourse, the squid proxy should run on any of the distros possibly allowing different configuration options for it.