I have my moms iPad now ( I do believe that it is the 2 Gen). I have replaced the old Apple ID with the new one. The only problem now is that I am going to test out the iCloud and it keeps bringing the old ID up. It will not let me click it to change it ( its grayed out). The only thing its letting me do is enter the password. I do not want to sync it with my computer and lose all of data on it. Is there another way to remove that old Apple ID?
Do this to set up the device for yourself...
Settings > Messages > iMessage > Off
Settings > FaceTime > Off
Settings > iCloud > Delete Accout (this only unregisters and deletes it off the device)
Settings > General > Reset > Erase All Content and Settings
Unregister your device at https://supportprofile.apple.com
More Info... http://support.apple.com/kb/HT5661