Our ISP forced us to use their router that doesn't have any option to block certain URL/IP like our 3Com OfficeConnect router has.
Is there any other easy way to implement this without an intelligent router (we are also using a D-Link 1016 switch). Or shall we buy a more recent 3Com router?
Thanks.
OpenDNS, or another (and possibly more controlled) option is to build a proxy server between your network and the router. You can do something open source like Squid and an addon for blocking or you can purchase any of many commercial solutions for blocking websites by category.
If you're going to be blocking websites, it's generally better in my experience to use a proxy filter instead of your router since the proxy can log traffic and be used to extract reports.
I am assuming this also means you have virtually ZERO protection on your network other than NAT. NAT is not a true firewall (but does a good job...)
Check out the PFSense project - Free OpenSource and very good. www.PFSense.org add the Squid support and you are golden.
Another simple project - (both free or paid) would be Untangle. Easier - imho.
These can each operate in a transparent mode - allowing you to lock down your network but also protect it.
Use OpenDNS.