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From this article - http://www.addictivetips.com/mobile/chevronwp7-unlocks-windows-phone-7-handsets-easily/, I notice that user will need to use unlocker such as chevronwp7 to unlock their windows phone so that they can install windows phone apps (xap files) onto their phone.

So, I was wondering if it is necessary for user to unlock (root or jailbreak) the phone in order to install the xap files? (Are there no ways to install xap files on a locked phone)

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It is necessary to have an unlocked phone to install apps using the SDK.

It is not necessary to install app from the Marketplace, of course.

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