Formatting iMac Hard Drive

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I'm going to be giving my iMac to a friend pretty soon and was wanting to get rid of all my personal files on the computer. My problem is this: There are a few applications on the computer (particularly the Office Suite) which I don't have the CD for anymore. I want to keep these on the computer. What do I need to do?
 
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Your Mac's Specs
iMac 17" 1Ghz G4  iPhone 3G  10.5.5
One way would be to create a new Admin account for your friend, then delete yours.
 

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