Re-Formatting

Now I have my new comp up and just about running (and when I get time, I will post pics), I am letting my old one go to my sister.
Question is, how do I re-format it? It's a dell and my sis reckons that it has a feature on it to restore factory settings, though I'm not sure that will format the hd.
I have the recovery disc (somwhere) so that should get windows back on it right?
Also, will the card reader and DVD drive continue to work after a format?
Lastly, how do you format a single hard drive comp?

Thanks guys.
Homer13

Why do you need to reformat it?

dunno, my sis seems to want it formatted. Shes saying about doing this dell restore program, but im not sure that will make any more room on the hd.

just get rid of any games, apps, programs she doesnt want. and disk clean it and defrag.