I had the same problem last week. I needed to clean some machines at my workplace before they being donated to some elementary rural area school. The machines used to hold sensitive data on them like employees accounts and credit card details. I have asked the same thing in forum and I received the explanation that, you can erase just the free space on the hard drive and leave the operating system in place but you can't be 100% sure that ALL data is destroyed - some things cold still remain in the OS. It's a very small chance, but still it's there.
For 100% erasing use DBAN and boot from DBAN CD, than re-install the operating systems and donate the machines. I did a test on my computer, I had some files, deleted them with the delete command in windows and after that I run a recovery software to scan for files. Of course i found them and recovered them with just few clicks. Later I did the same, but after normally deleting i have erased the free space on the drive with one pass (simplest method). I run recovery again and I could recover no files - so it was pretty secure for me.
Now depends how paranoid you are and what kind of data did those machines contained. If they didn't contain some state secrets than you can erase just the free space and leave the operating system as it is because it takes much longer to completely erase the hard drive than re-install the OS.