Why not boot from the supplied media OS disk (hold C when booting with the DVD in the drive, having inserted it prior to shutdown), wipe the hard drive and install a fresh copy of OS X?
If you're worried about the new owner using a data recovery tool, you can run disk utility to zero the data. This was the case for OS 10.2 & .3 (don't know about .4 & .5):
1. Insert the Mac OS X CD.
2. Restart the computer.
3. Immediately after the startup sound, press and hold the "C" key to start up from CD.
4. When the Installer screen appears, do not click Continue. Instead, choose Installer > Open Disk Utilities.
5. Select the hard drive to erase.
6. Click the Erase tab.
7. Select the volume format from the Volume Format pop-up menu.
8. Click Options.
9. Select the checkbox for "Zero all data".
10. Click OK.
11. Click Erase.
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