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Note : security etc has not been taken care.
There's a non-techincal problem of making sure that no one does something stupid
Actually no. Its purely technical. Here are the steps :-

1. Limit user privileges http://linux.die.net/man/5/limits.conf

2. Create a jailed environment & copy limited binaries in the environment for him to execute http://olivier.sessink.nl/jailkit/

It is pretty big a technical problem. Most of the server selling guys anyway do the above things. They miss the web based shell though.