Selling non-functioning MacBook Pro on ebay

Hello,
My old MacBook Pro died a few weeks ago and I now have a new one. I would like to sell my old machine on ebay for spare parts. What I would like to know is how should I go about formatting the hard drive?
I have removed the hard drive and inserted it into a caddy so that I could copy the files I needed to my new machine.
Should I use disk utility to erase the drive? Is it possible and should I install a new Mac OS on the disk before replacing it in my old machine? I have a copy of Snow Leopard that I could use.
I appreciate any advice on this.
Thanks,
Ross

Hello Clinton, and thanks for answering my question. That was very helpful. I have encountered a problem though . . .
I have erased the hard drive as you advised and I am now trying to install 10.5 Leopard on to it. I have used Disk Utility to create an image of the install disc, but when I try to Restore the .cdr file on to the hard drive I get one of two error messages:
Unable to scan "Mac OS X Install Disc 1.cdr." (Invalid Argument)
or
Could not validate source - Invalid argument
Have you (or anyone else out there) come across this problem and have any advice on how to solve it?
Thanks again,
Ross

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