Clean install of new rom?

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I have flashed the new recovery rom onto my tattoo and installed the modaco rom but what do I do if I want to reset the phone to defaults so its like ive flashed my phone and its like new from the factory?

I did a nandroid backup of my orignal firmware which was rooted. When I installed the modaco rom and did an update it worked but I had all my old apps and settings etc.

Do i select the wipe data/factory restore setting in the recovery rom before selecting the rom to update?

what happens to the apps i've bought from the market as well? do they appear as apps to download again when i login to my android market account?

When you restore the ROM you've backed up using recovery, then EVEYRTHING will be restored. Which includes ALL apps, contacts, SMS's, emails and app settings which were there at the time of taking a backup.

I actually wanted to wipe everything rather than restore it but done it now with the recovery boot . the new Rom is much cleaner than the orange/htc version