I would boot off of the install disk and open disk utility in the menu bar to format the hard drive, if you are really paranoid you can re-zero the drive and if you are extremely paranoid use some third party partitioning program for a defense department grade 11 pass random wipe. Then I would give your friend the Mac and the install DVD so that your friend can customize the install to suit their needs.
No need to waste space installing all languages, X11, printer drivers and developers tools if they will not be used.