If you have two Macs from a similar era, such that they could run the same version of Mac OS X, you can attach the drive of the old Mac in FireWire Target disk mode, then do the Install using the other Mac onto the old Mac's drive. Be sure to use a "Full Retail" DVD or the drivers for the old Mac may not be included and it will not start up.
Erasing does not actually delete the blocks that hold the data, it just wipes out the Directory so that nothing can be found easily. All the blocks are then added to the free list. If you then re-install Mac OS X, that scrambles things up and overwrites many files, but possibly not all.
To really erase, you chose security Options and Zero All Data. This deliberately writes Zeroes into every block (and takes several hours to complete). 35-pass gives only slightly better practical improvement, takes 35 times longer, and is only really needed for miltary secrets.