do a complete restore in itunes then unlock it/jailbreak it before you sell it on ebay because you'll get almost 100 dollars more in some cases or you can just give it to your dad.
if you wanna make sure no one will ever acess any info you had on your iphone if you sell it then there is a more thourough wipe. which is by no means easy for just anyone to do so i guess you must have some skills in this kinda stuff lol.
http://www.zdziarski.com/papers/wipe.html
info and tips on jailbreaking your iphone.
http://lifehacker.com/370532/jailbre...-in-45-seconds