Does Erase all contents and settings in 2.0.2 wipe the firmware updates?

I am about to sell my ipod touch on ebay and to ensure that all my data is cleared I have used the erase all contents and settings option that 2.0.2 introduced. The question is does this return the touch back to the factory firmware (1.4 I think), unable to check without starting to sync new device to itunes again.

I believe that option has been available since earlier firmware versions. My understanding is that it does not affect the software/firmware on the iPod. From what I've been told, once the iPod is updated to 2.x.x it is not possible to go backward to a 1.x.x version. If anyone's been able to do this successfully, please correct me. You should be able to hold 'Shift' when clicking Restore in iTunes, so you might try that to see if 1.1.4 is an option to restore the iPod to.
CG

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