Have parental controls gone mad in Mountain Lion?

I have two children each with separate accounts, for 2 years the settings have been to automatically restrict web sites according to the content rules set by Apple. Its worked brilliantly with nominal customization! Fab - Until Moutain Lion.

The settings I think remain the same. However, every website the kids try to use through Chrome or Safari puts a block on it asking for an administrator password as the computer is trying to access a secure website which is restricted. - I didn't restrict it (I don't think) so how can I stop it happening.

It is also happening with other applications such as Skype.

The web has become unusable for ordinary school work for both children, I need to resolve this without turning off parental controls - can anyone help please?