Final answer:
To prevent kids from installing software on a home desktop, a Standard account should be set up for them on Windows 7, as it restricts changes to system settings and software installations.
Step-by-step explanation:
If a user does not want their kids to be able to install software on their home desktop, the type of account they should set up in Windows 7 is a Standard account. Standard accounts are designed for everyday tasks and prevent users from making changes that affect the security and the system settings of the computer. In contrast, Administrator accounts have full control over the computer and can install software, change system settings, and create or delete user accounts. The Power User group is a legacy from earlier versions of Windows with limited administrative rights, and Remote Desktop Users is a group designated for users who require remote access to the machine.