Factory Reset 2007 iMac with Mavericks

I Have a new MacBook Pro and want to give my grandson my 2007 iMac with latest Mavericks. I'm transferring everything between the two devices now. Once completed I would like to do a complete reset so that all of my data and preferences would be gone and I can set up the iMac as if a new unit with my grandson as the administrator/owner/user.
How do I proceed ?

Click here and follow the instructions. When you reach step 5, insert its original disk, restart with the C key held down, use the Disk Utility to erase the internal drive, and install a fresh OS.
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