Q: remove personal data from old iMac

What to do before selling or giving away your Mac - Apple Support

Depends on how you plan on recycling it...?

If you plan to pass it on to family or a friend, you can wipe and reinstall OS X using your Tiger Disc Set or a Retail Snow Leopard upgrade DVD.

If you plan on just dropping it off at the local recycling center, you should probably open it up and remove the HD.

https://www.ifixit.com/Guide/iMac+Intel+17-Inch+Hard+Drive+Replacement/891

https://www.ifixit.com/Guide/iMac+Intel+20-Inch+EMC+2105+and+2118+Hard+Drive+Rep lacement/1092

     1. Boot the computer using the Snow Leopard Installer Disc or the Disc 1 that came

         with your computer.  Insert the disc into the optical drive and restart the computer.

         After the chime press and hold down the  "C" key.  Release the key when you see

         a small spinning gear appear below the dark gray Apple logo.

     2. 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.

         After DU loads select the hard drive entry from the left side list (mfgr.'s ID and drive

         size.)  Click on the Partition tab in the DU main window.  Set the number of

         partitions to one (1) from the Partitions drop down menu, click on Options button

         and select GUID, click on OK, then set the format type to MacOS Extended

         (Journaled, if supported), then click on the Apply button.

     3. When the formatting has completed quit DU and return to the installer.  Proceed

         with the OS X installation and follow the directions included with the installer.

     4. When the installation has completed your computer will Restart into the Setup

         Assistant. After you finish Setup Assistant will complete the installation after which

         you will be running a fresh install of OS X.  You can now begin the update process

         by opening Software Update and installing all recommended updates to bring your

         installation current.

     5. If you are planning to sell or give your computer away, then do the following:

        After you reformat your hard drive and reinstall OS X, the computer restarts to a

        Welcome screen and asks you to choose a country or region. If you want to leave

        the Mac in an out-of-box state, don't continue with the setup of your system. Instead,

        press Command-Q to shut down the Mac. When the new owner turns on the Mac,

        the Setup Assistant will guide them through the setup process.