How to restore/reinstall new imac

Hi folks. I just bought a 4 month old iMac 21.5 500GB model and yeah, I'm blown away. Anyway the thing is that there are a lot of empty folders from previous owner and his name keeps showing up for accounts etc, so I want to wipe the HDD and restore/reinstall the OS X 10.6 and start like new again before I get into having my own stuff on it. I have 2 discs that came with it - Mac OS X Install DVD and iMac Applications Install DVD. What's the process for doing this so that all HIS stuff will be gone forever and it will become MY iMac? Thanks guys.

Wonderful - it's easy to do what you want to accomplish:
Insert the install CD; once the icon shows on the desktop, hold down the C key and choose Restart. It will now boot from the install CD. Once booted, click past the language selection and then go to Utilities (Menu bar), click on Disk Utility, and choose your internal hard drive. Click on Erase - you'll have various choices; I usually go with the 7 x write (it'll write zeroes seven times and nobody will be able to recover anything). Once the erase is done (it will take some time!!), quit Disk Utility and let the installer do its' thing. You will go through the complete install and initial setup, so you can set up your own account, etc. If you have any files, etc. that you want transferred, back them up first - during the setup, the Setup Assistant will start automatically and ask you if you want to transfer anything. If you only have a couple of files, you can also drag 'n drop them later. In any case, the setup will continue and will ask you to insert the second disk. Once all of that is finished, you'll have your own setup and everything from the previous owner will have been deleted.

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