Recommend a full restore ?
No, it will not. Before you reinstall the OS you have to erase the hard drive.
Why won't you just check the users manual?
This has all you the information you need.
http://hivelogic.com/articles/how-to-prepare-a-mac-for-sale/
That article is from 2008! In 2012 just log into recovery and reinstall Lion! Its that simple!!!
Hmmm, I would create a new user "User" or whatever, with admin rights. Restart and log in as the new user then delete the account you used as your previous main user. All you files and folders should be gone after that. If you have apps you need to delete then delete them in the usual way.
Stewart