Motorola Droid :: Factory Reset And Updates / Applications / Root

There's a lot of instructions floating around for unrooting the droid and what makes the most sense to me is to let the phone handle factory reset thereby bringing the phone back to its original out of the box configuration. By reset I'm referring to booting with power+x vol up+camerra and choosing factory reset from the list. Can someone who's done the reset on a rooted phone confirm that SU permissions are gone after? Also, does the reset delete all apps, system settings and user data and bring the phone back to a true factory state (including going back to OS 2.0)?