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Overseas and need Xmas Present for Son. What is "Really" Factory Unlocked?

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Hello, we are military stationed overseas and I am looking to buy a Iphone 4s for my son. We are limited on what we can get locally, so I have been looking on ebay in the U.S.

I thought I had educated myself on what "Factory Unlocked", "Jailbroken" etc. all mean, but I guess I'm still confused. I thought Factory Unlocked meant it was either purchased from Apple unlocked, or a carrier like AT&T provided a previous customer with the code to do so. I thought this would allow for any software upgrades or phone resets without changing the unlock condition. I understood Jailbroken to be a software hack to get around all this for people who didn't want to pay for a Factory unlocked phone.

Today I looked on ebay and saw a phone that said Factory unlocked, but also said jailbroken. Why would I need to jailbrake something that was factory unlocked? Also, I see some say factory unlocked through itunes. Why would I need Itunes if I purchased it from Apple or had it unlocked through the carrier.

I'm sure you've heard these questions a million times, and I've really tried to figure this out on my own but can't seem to do so. As I said we are military stationed overseas and we pretty much have one chance to get this right before Christmas. I don't want to buy something he can't use.

Any tips or help would be appreciated. Ebay do's and don'ts when buying Iphones online would be a help as well.

Thanks everyone.

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