The 2.1 iPod firmware has a new security feature present. You have the option of making the iPod erase all of it’s data after ten wrong passcodes have been entered. This seems like it would be a great feature, since there are many ways to bypass the security passcode presently and see some personal data such as email, contacts, and text messages, including one that doesn’t even need jailbreaking. » Firmware 2.1 has a data wipe feature after 10 passcode failures

The latest beta of Firmware2.0 will allow us to safely remove all settings and personal data. Apple has listened to it’s users and especially to Jonathan Zdziarski who created a special iPhone Forensics Toolkit that allowed for retrieval of personal data on the iPhone.
» Firmware 2.0 – Safe erasing

Some of you might have read the article from Jonathan Zdziarski where he states that all your personal data is still on the iPhone after you have restored to a new firmware.

For the people who haven’t read it i’ll quickly explain.
When you restore your iPhone through iTunes, all it does is a quick format.

This means that all your data is still on the iPhone although no longer in the partition table.
If you use Jonathan’s iPhone Forensics Toolkit, it’s not that hard to get all the data back in the open.
This means that all your pictures, e-mails, cookies, etc,etc are visible to the next person who is going to own your iPhone !
» Securely wipe your iPhone the guide !