I just did this this weekend as I sold my MBP.
If you have an OSX install disc or the discs that came with the computer at purchase, put them in the computer and re-boot under these discs by selecting them under "startup volume" in system preferences.
Once they load up, go to "Disc Utility" in the drop down menues at the top. Then, you should be able to initialize the disc which will wipe it clean.
However, if you want to securely erase your data, you will need an app like Drive Genious to shred your data. If you don't, you run the risk that someone who is tech savvy buys your computer, accesses the data and either steals it or sells it to someone else. If you can, I would recommend shredding data if you have sensitive docs that might contain credit card, social security #s, etc.
Once initialized/cleaned, you will have to go through the process of re-installing the OS and all related applications. Then you're ready to sell!