Reset to factory settings

If it were me, I would boot to the original OS X disk, or a retail copy of OS X, bring up disk utility, and do a secure erase writing zero's at least once, although if you want to be very thorough you can write zero's 7 times. Then reload the system and associated software, and use Software Update to finish things up.

that includes zero'ing out the raids right?

[http://hivelogic.com/articles/how-to-prepare-a-mac-for-sale]

[http://discussions.apple.com/thread.jspa?threadID=2385787] - how to shut down computer after re-installing system software so new user gets welcome screen

does the 0 out solve the problem I'm having with the software installation not recognizing the machine serial number?

Usually the problem with discs saying they won't install (I'm not sure about the machine number since it usually isn't that specific) is that you're using the wrong discs. Discs (gray color) that came with a machine will only work on that machine model. For what you are doing you should use the original discs that came with the computer and then provide them with those discs (it's a legal requirement for any Apple software on the computer, including OS). If you put on a newer system version, this has to be done with retail (black) discs and you also have to provide the buyer with those discs.

Edit: MCSN, I see you are not the person who started this Topic. It is usually easiest to start your own topic unless your question is truly identical to the original poster's (OP). That way we will not be confused by multiple issues and can target your questions specifically.

Announcement: How to Post a new Topic - [http://discussions.apple.com/ann.jspa?annID=650]