Yep it's true.

As you probably already know previous versions of Windows a full format did not wipe in any way, all it did is a quick format(resetting the MFT) plus bad sector error checking and correction(1).

So from Vista onwards to Windows 7 full format also zeroes the entire disk, thus making the full format process a lot more secure then before.

I found out the hard way while playing with some recovery tools. :)

Random garbage would have been better, but not that needed really, since i don't believe in recovering, after zero only wipe, strings of more then 5 bytes from 10(0) or so megs, even if doing that magic magnetic polarization thing experts were boasting a couple of years ago. From my experience zero wipe is more then enough, and why bother with dozens of passes of all kinds of garbage that lasts for ages, when people don't even zero wipe.

So if you ask me, this is nothing but good news from Microsoft. ^^