Formatting hard drive on Mac Mini

Hi, I just bought a mac book and i'm selling my mac mini to a friend. now, i know i can format my hard drive though disk utilities, but when i erase my hard drive, what happens the next time i turn on my computer? i'm thinking it will be just like when i first got the mac, it will ask me for the OS X installation disk, and away i go. basically, i'm trying to hand this computer over in the same state it was when i pulled it out of the box. any help/clarification would be great.
cheers

Erasing your drive with Disk Utility will delete everything on your hard drive, but then it won't have any OS. I have never had an OS-less disk, but I doubt Open Firmware (or EFI, if it's an Intel Mini) will ask for your OS X Install disc(s). You will probably see an error message or something.
What you should do is follow Mario's suggestion and re-install Mac OS X, doing an Erase & Install. That will erase everything on your hard drive & install a fresh copy of Mac OS X. When your friend turns his new Mini on, he will see the "Welcome" screen and will be guided through the original setup process ...

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