That may be one for the lawyers.

One reason a car is sold as "salvage" is because the cost of repairs exceeds
the value of the car once it is repaired.  In an accident, does the engine
get damaged?  Transmission?  I'd expect the wheel alignment would not be
covered.

I'd guess no, but that is just a guess, not based on any fact.  The
manufacturer can always claim that it was damaged in a crash so warranty is
no longer valid.  Sort of like an apple that had hte work cut out.  The rest
is still edible, but . . . . .

Warranty is no longer in force.

HT beat me to it, but NO the warranty is not valid for a salvaged title.  
Hyundai would have no way to verify why the title was salvaged.  

Incidentally, if you are considering a car with a title salvaged due to
water damage, my personal advice would be to forget it.  When Hurricane
Floyd flooded my area there were tons of these cars on the market.  I know
4 people who thought they were getting the deal of the century and later
regretted it BIG TIME.

Eric