I want to sell my used ibook...

But how do I erase everything from it so that i am able to sell?

Thanks to Niel for this:
If you are trying to change the short name of an account's home folder, do the following:
1. Open the NetInfo Manager in the Applications/Utilities/ folder.
2. Click the padlock and type in your password.
3. Under the list of accounts, locate your account and change the home property of that account to the desired setting. Don't delete or alter any other accounts. If you want to change that account's name, stop here and perform the second set of instructions.
4. In the Finder, rename the home folder to the name you provided in the NetInfo Manager.
5. Log out and back in.
To change the short name of your user account, do the following:
1. Open the NetInfo Manager in the Applications/Utilities/ folder.
2. Click the padlock and type in your password.
3. Locate the admin group in the list of groups, and add the new name to the list of members of this group. Don't delete or alter any other groups.
4. In the list of accounts, locate your account and change that account's name property. Don't delete or alter any other accounts.
5. Close the NetInfo Manager, log out, and then log back in.
The home and short name properties can be changed independently of each other, but System Preferences won't let you change either, and makes both of them identical when you create an account. If an account isn't a member of the admin group, it won't have administrator access. Some people have left themselves without an administrator account on the machine by not updating the admin group properly.
The proper way to prepare an iBook for sale or transfer is to use the system discs that came with it to restore it to like-new status. If you call Apple and give them the model number of your computer, they often have the original system discs that came with it available for a $20-$30 processing/shipping fee. Restore the iBook to its original state, and include the system discs in the purchase. That is the best way to go. (Incidentally, I won't buy a used iBook that doesn't include the system discs in the sale. As far as I'm concerned, they are vital.)

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