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just so you know, jailbreaking is a pretty easily reversible process. just do a new restore of your iphone and you're back to apple's official OS with no one the wiser. strongly recommended if you're taking it in for service.
jailbreaking should also not be confused with unlocking. Jailbreaking opens up access to your iPhone and its internal operating system allowing you to change things around, install non-Apple applications, and do things Apple-sanctioned applications can't.
Unlocking your iPhone allows you to take it to a carrier other than the one which it is locked to. If you're in the US you could unlock it and take it to a carrier other than AT&T, like t-mobile. You may not be able to use all the features of the iPhone, such as Visual Voicemail, when on another carrier.
Unlocking requires Jailbreaking. You can Jailbreak without unlocking (and unless you really need to unlock, I recommend staying away from it, it can cause other issues with your phone).
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