In order to erase your hard drive you're going to need to have a second disk to boot off of. I'll assume that you have your OS X installation disk, which will do the job nicely.
Restart the computer and hold C to boot from the optical drive. It will probably open the installer automatically, but I recall that Disk Utility can be accessed from the menu bar. Open disk utility and select your hard drive in the list to the left.
Next, you need to click on the erase tab in disk util. The options are grayed out for me because I'm booted off of my HD, so some of the instructions below may not be exact. The volume format should probably be set to Mac OS Extended (Journaled). Name is whatever you please, but generally Macintosh HD.
Now click on security options (this is the part I can't check), and you will be presented with a few choices. The first erases everything, but doesn't actually write zeros all over your disk. The second writes zeros everywhere, which takes longer but is more secure. Third option writes over everything 7 (I think) times, which is pretty secure, and the fourth will write over everything 35 times. More writes are more secure, but will take a lot longer. You can just start it going and leave it over night so the time shouldn't really be a problem.