In theory, an unlocked multiplier can make you clock a chip as high as it can handle before it burns out. In practice, an unlocked multiplier is just a feature that makes it easier to reach higher overclocks. As TJ said, the real boost comes from CPU Frequency speed, but that is more difficult and takes more time to stabilize. With the unlocked multiplier, you can just bump your clock speed by changing one setting.
To make it quick and dirty: each chip gets its stock ghz setting from this formula (more or less) - CPU freq. x multiplier = ghz.
On the i7 920, it would be 130 BLCK speed (CPU freq.) x 20 = 2600, or 2.6 ghz, which is the i7 920's stock setting. However, if you set that multiplier to 21, you'd now have a chip running at 2.730 ghz.
At multi of 30, you'd be at 3.9 ghz. But the 920 has a locked multiplier, so you can't do that.
My Phenom II, however, does not have a locked multiplier, and I can bump the multi to really high levels. Still, after a while, you have the same need to bump voltages and stabilize the system via the use of other settings, so I find that I typically bump the multiplier up a bit (usually to 18x) and bring the CPU freq. up with it to get the speed I want.
Read up a little more on it, there are far more detailed guides than what I've just said.