The "problem" was just that I was doing something that I had never done before and so I was a bit unsure. I was hoping to get a quick response from someone who might have been online at the time, but that didn't happen. Once I figured it out, I would have deleted my post had the "edit/delete" button actually had a delete option that I could find.
Anyway, I sold a PowerBook on ebay and wanted to be sure that the new owner is greeted with the the whole welcome and setup process rather than having any of leftover information or passwords.
Simple enough, the "solution" was to restart and hold down the "C" key rather than to try to reinstall from within OS X (which I did first). Then shut down the computer once the installation gets to the welcome and setup screen. Subsequent restarts take you to the setup screen.