“Formatting” An iPhone To Wipe Data - securosis.com
Yesterday, an anonymous friend we’ll call TC (you know who you are) was panicking over this article, in which a detective from the Oregon State Police was able to recover data off a restored iPhone. Turns out while when formatting a computer hard drive there is an option to secure format it, the same is not the case for the iPhone.
A group of geeks from Securosis, has written this article, showing how to wipe it so when you upgrade to the 3G model, you can be safe selling your old one on eBay, without worrying about who has your data.
Basically the idea is to restore your phone, create 3 or more playlists with enough songs to fill the iphone, then copy them over individually, which basically removes the previous data.


