I was wondering if I erase all content and settings on my unlocked jailbroken phone does this mean it just erases pictures, numbers, email? Will this affect the unlocked or jailbroken part of the phone?
If you are needing to hide a previous jailbreak, it is suggested to do a restore, or even a DFU restore in iTunes to ensure that all trace of a jailbreak are gone.
"Erase all content and settings" will wipe the phone completely, including its operating system. You'll need to DFU the phone afterwards to make it work again.
A lot of people on this forum have had problems with that. You'll find some anecdotes if you mroogle "Erase all content and settings"