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For the SD card, a format alone is not good enough. With a regular format data can be recovered pretty easy if no new data is written to the card. Pull the SD Card and put it in a USB Card reader. Now you need SDFormatter. Launch the app and hit Options. Now for type of format choose FULL(OVERWRITE). This will write a bunch of 0 and 1s, more or less junk data, to the SD card. I would do it two or three times. Even then there is still a slight chance of recovery but the chances diminish and what data might still be recoverable is far more likley to only be little bits and pieces. I might suggest SBFing the phone 2 or 3 times just to be safe to.
I personally wouldnt say oh well, you never know what sensitive info could have been stored on there at one time. Hopefully overwritten a few times by now just out of normal use but you never know..but hey thats just me. I usually try to be safe then sorry. To bad Sony doesnt think like this..but thats another issue in itself lol.
I forgot to say this earlier, your best bet is probably ebay or similar. My girlfriend sold her her iPhone 4 the other week when we switched from ATT to VZW. We tried flipswap and a few other sites. They were going to give her about $300 maybe, and sold it on ebay for over $400. Ebay does take 7%(I think) of the selling price, but imo, its the easiest way to sell something like this.