How can I reset my MacBook Air to factory settings that will delete all 3rd party apps and wont delete my data and iLife apps?, How can I reset my MacBook Air to factory settings that will delete all 3rd party apps and wont delete my data and iLife apps?

I gave my MacBook Air to a person to use for a while, and now I got it back. I want it to be good as new before I start using it properly. Its okay if I lose data but I dont want to lose the Apps that were onboard. I want to start all over again.
Thanks

Assuming you don't have a Time Machine backup before you lent your MacBook out, then you've a few choices.
If you want to set it back to the day you got it, then if it's Snow Leopard, use the micro USB stick that came with your Mac and after boot from it ( hold the Option key on startup) select the USB stick and when booted from it, go to Disk Utility and reformat the HD then install SL. when it's done and started in 10.6, select the install Applications from the USB stick, then your back with iLife apps etc.
If Lion, restart from the Recovery Partition as per the instructions above except you don't need anything plugged into the Mac, select Recovery and again DU erase and install Lion. once Lion is installed the iLife apps will be available to download from the App store as your MacBook will be recognised as coming with these apps.
WARNING, both these methods remove ALL user data

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