recover from lost password, reinstall osX

i am a new mac user.
on a out of box macbook the user password got lost shortly after it was created. i assume the best recovery is to re install the osX. nothing to save backup because this portable is almost out of the box.

reference the printed service manual that came in the box is difficult it reads like it was google translated from English->Korean->English.
-at startup; do i hold down the 'c' key and boot off the cd?
-to overcome the confused pw do i reload only the OS?
-do i need to do more, what options are there?

No need to reinstall. Just follow these instructions: Mac OS X: Changing or resetting an account password.

Look in the Resetting the original administrator account password section in the webpage.

thanks!

No problem. Glad your problem got fixed!