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I'm not current on this so don't take this as having any athority behind it.
I belive in the past i had read that with the proper equiptment it is possible to look at data that was on the drive a few writes ago. so if some thing was over written say 3 time they could in theory read all 4 layers of writes.
7 passes of overwriting is intended to make it difficult enugh that the person trying to get the data will move on to another drive that may not have even been erased insted of taking the time/cost to get at your data, kind of like locking the doors on a POS car and parking next to a Corvette that has the top down.
I agree with ryan on that one is most likely plenty for protection. If you are disposing of a drive, then again there is always the drill press method if you are just junking the drive and want your data safe as well.
On the other hand what you do depends on if it is home or work and if work what your customers may want to be happy. if dealing with department of defence/military stuff 7 overwrites and a drill would probaly make them happy. if at home write it once as the guy in the trash that wants data will just go to the neighbors that didn't bother to even delete thier data.
i use file shredder and zero the drive after ive deleted the partition and reformatted if its something i plan to sell, if its junk a hammer and screw driver through the platters works great