How to unregister iphone before selling it

I recently purcharsed an iPhone 4.
I'm going to sell my iPhone 3Gs. How do I format and unregister the phone (i.e. erase all the data in the phone)?
Thanks for answering

beedoola wrote:
Do you need to unlock the phone before selling it or will the erase method above do that? I have an ATT iphone 4. Do I need to unlock it if the buyer is going to use it with ATT or Tmobile?
Only ATT can unlock the phone if it's going to be used with T-Mobile

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