iPhone 4 Reset and unlock/lock

Hi,

I have an iPhone 4 (software unlocked).

If I press the 'erase all content and settings' in reset menu, will the iphone 4 remain unlocked, or will it be locked again?

It might stuck in endless loop, a friend of mine tried this and he had to wait till 2-3 hours, then started searching on web and eventually had to re-install everything + Jailbreak + unlock.

Better delete everything manually.

try new ios 5 for all data new