how do you erase everything of your unlocked iphone without locking it again ?

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heres the thing, i'm going to sell my iphone 3Gs software 4.0 and i want to completely erase everything without locking it. Contacts, music, notes, apps, messages, mails, the whole thing, but not by jailing it and locking it. my friend once tried to go to SETTINGS>GENERAL>RESET>ERASE ALL CONTENT AND RESET ALL SETTINGS, but her phone just showed that little apple when you turn it on and she hasn't been able to turn it on again since... i don't want that to happen...
 
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