Here are the steps to disable “Open in Windows Explorer” for everyone except site Owners.
•On your SharePoint server go to the following folder and make a copy of the DefaultTemplates.ascx file. \Common Files\Microsoft Shared\Web Server Extensions\12\TEMPLATE\CONTROLTEMPLATES
•Rename the copy of DefaultTemplates.ascx to CustomDefalutTemplates.ascx
•Open CustomDefaultTemplates.ascx in Notepad and change the following line:
•ID=”OpenInExplorer” Change PermissionString=”UseClientIntegration” to PermissionString=”MangeWeb”
•Save the file
•Reset IIS