How do you wipe a 1st gen macbook air running on lion

Boot up from Recovery HD and use Utilities?

Do you wish to reinstall Lion on a formatted drive or do you wish to downgrade to Snow Leopard?

Downgrade Lion to Snow Leopard

1. Boot from your Snow Leopard Installer Disc. After the installer loads select your language and click on the Continue button. When the menu bar appears select Disk Utility from the Utilities menu.

2. After DU loads select your hard drive (this is the entry with the mfgr.'s ID and size) from the left side list. Note the SMART status of the drive in DU's status area. If it does not say "Verified" then the drive is failing or has failed and will need replacing. SMART info will not be reported on external drives. Otherwise, click on the Partition tab in the DU main window.

3. Under the Volume Scheme heading set the number of partitions from the drop down menu to one. Set the format type to Mac OS Extended (Journaled.) Click on the Options button, set the partition scheme to GUID then click on the OK button. Click on the Partition button and wait until the process has completed.

4. Quit DU and return to the installer. Install Snow Leopard.

This will erase the whole drive so be sure to backup your files if you don't have a backup already. If you have performed a TM backup using Lion be aware that you cannot restore from that backup in Snow Leopard (see below.) I suggest you make a separate backup using Carbon Copy Cloner 3.4.1.

If you have Snow Leopard Time Machine backups, do a full system restore per #14 in Time Machine - Frequently Asked Questions. If you have subsequent backups from Lion, you can restore newer items selectively, via the "Star Wars" display, per #15 there, but be careful; some Snow Leopard apps may not work with the Lion files.

Reinstalling Lion Without the Installer

Boot to the Recovery HD: Restart the computer and after the chime press and hold down the COMMAND and R keys until the menu screen appears. Alterhatively, restart the computer and after the chime press and hold down the OPTION key until the boot manager screen appears. Select the Recovery HD and click on the downward pointing arrow button.

Erase the hard drive: Upon startup select Disk Utility from the main menu.

After DU loads select your hard drive (this is the entry with the mfgr.'s ID and size) from the left side list. Set the format type to Mac OS Extended (Journaled.) Click on the Options button, set the partition scheme to GUID then click on the OK button. Click on the Partition button and wait until the process has completed. Upon completion quit DU and return to the main menu.

Install Lion: Select Reinstall Lion and click on the Continue button.

Note: You can also re-download the Lion installer by opening the App Store application. Hold down the OPTION key and click on the Purchases icon in the toolbar. You should now see an active Install button to the right of your Lion purchase entry. There are situations in which this will not work. For example, if you are already booted into the Lion you originally purchased with your Apple ID or if an instance of the Lion installer is located anywhere on your computer.