How To Reset Your iPhone Content And Settings
If you are planning to upgrade to a new Apple iPhone 3G anytime soon, you are probably thinking, “what am I going to do with my first generation iPhone?” We’ll whether you give it to a friend or family member or decide to sell it on ebay, you are going to need to reset the content and settings to their defaults so the new user can make it their own.
This is a simple task (like most things on the iPhone). Just follow these steps:
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Make sure you sync your iPhone one last time so you have all of your content backed up to your computer.
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On the iPhone, go to the Settings -> General -> Reset menu.
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You’ll see the option to “Erase All Content and Settings”, select this option and confirm. This will do exactly what it says and remove all of the content (music, movies, pics, email, sms, etc) from your iPhone and set all of the settings back to their defaults.