After introducing them to the (then dial-up) resources that the net can provide I gave my wee ones a time-limited access and watched over their shoulder as inobtrusively as I could.
I was very wary of them wanting a mic or cam.
And then there was broadband... and they were all a bit older.. so I still kept a discreet eye over their shoulders and they knew I'd be 'keeping an eye' and they HAD to include me into conversations on, e.g. MSN whether I was logged in or not.
I never set up any filters and believed I had brought them up sensibly and kept an eye to make sure that I had. And cleaned up after my youngest who clicked on everything at the age of 14

I also wanted to deal personally with anything I thought might not be appropriate.
And I cleaned up after them at the weekend and checked that the NOD antivirus, Spyware Blaster, and Adware were doing their job and up to date. I went on all the sites they had subscibed to.
I watched what programs they had installed. Removed Limewire and demand they DO NOT reinstall it, more than once
It takes time - but sometimes it just might be wrth it.
Oh! - and then they go off into the outside world's web access

You have no idea how glad I have been with primary schools filters!
My middle one met her patrner online through a mutual like of a band and is and has been so happy since - so it's not all scary
Hope that helps