I want to keep root and CyanogenMod Rom. I am selling my phone and I want to keep it up to date but I want everything else erased including the apps I downloaded and bought. How can this be done.
A clean install of the latest CM7 will take care of that.
Just do it like your flashing a new ROM, format system/factory reset, format cache/data, format dalvik...flash the ROM. From there you can go to "power down" rather than rebooting into the ROM. Remove your SD card and voila...the next time whomever turns on the phone it will do the first boot and initial setup of a clean CM7.