I bought a white 64mb ipad2 in early June 2011. It's a cool machine but it just isn't what I thought it would be. I am a teacher and now that school is starting, I'm finding out that the apps for Microsoft Word and PowerPoint do not allow me to create or edit documents and I'm running into problems just viewing those which I have spent five years creating. I just don't have the patience or the time to learn new word processing applications (such as Pages-which I HATE). I wish I had not made this purchase and of course, i cannot send it back for a refund at this late date. I have no other choice but to sell it for less than what I paid for it. How do I remove my applications and personal information plus restore it to it's original factory settings before I transfer it to another individual? If I were to sell it through an online auction, what would I need to do to ensure that it will work for a new owner with a new sim card and data plan through ATnT? Are there any "unforeseen" obstacles involving contracts, etc.? Any guidance would be appreciated.

Follow this link. Select settings and resetting ipad.
http://help.apple.com/ipad/4/interface/

Either connect it to iTunes and choose Restore from the Summary page (not Restore from Backup), or go to Settings > General > Reset, and choose Erase All Content and Settings.

You will have to contact AT&T but there should be no issues with their no obligation monthly plans.

I would use the Erase All Content And Settings function before selling it.

-t

Good point. Make sure you cancel your AT&T plan (if you have one) first. Be a shame to pay a couple months on auto-renew without noticing it.

Thanks for catching that, thewitt.