We were able to create slave site from user section. But now we have following problems:

1. From each slave site the users can manage all other slave sites. We need to restrict this to manage their own slave site by each user.

2. All the user listing from the master site is copied to the slave site tables also.

1) If you have not shared the users between the website, this mean that each slave site will have its own administration and its own users definition.
When creating a website from the front-end, it is strongly recommended to NOT share the users between the website because this will automatically allow the latest slave installation to change the current administrator.
So if you want to have each slave site that have its own administration, just don't share the user and select in the JMS template an admin user that have less permission.

In the video, this is the "FE_Admin" user that you can define yourself and limit its permissions.

2) NO.
All depends how you have created the website that will be used as template.
If you had follow the tutorials step 13, the website that will be used for the replication is the tpl_master.
Up to you to create a very limited wesbite for the creationg of the slave site.

If you have chosen to replication your master website, this is a bad idea as effectivelly, this will replicate all your users.

If you had follow strictly the tutorial step 13, this will give you an independent administration with limited permission and also "empty" db without predefined users.