The anomaly detection problem can be formulated as one of learning to characterize the behaviors of an individual, system, or network in terms of temporal sequences of discrete data. We present an approach to this problem based on instance based learning (IBL) techniques. To cast the anomaly detection task in an IBL framework, we employ an approach that transforms temporal sequences of discrete, unordered observations into a metric space via a similarity measure that encodes intra-attribute dependencies. Classification boundaries are selected from an a posteriori characterization of the valid user's behaviors, coupled with a domain heuristic. An empirical evaluation of the approach on user command data demonstrates that we can accurately differentiate the profiled user from alternative users when the available features encode sufficient information. Furthermore, we demonstrate that the system detects anomalous conditions quickly --- an important quality for reducing potential damage by a malicious user. We present several techniques for reducing the data storage requirements of the user profile, including instance selection methods and clustering. An empirical evaluation shows that a new greedy clustering algorithm reduces the size of the user model by 70% with only a small loss in accuracy.