Offical Goverment WEB site for CARS (Cash for clunkers)
http://www.cars.gov/dealer/faq#new-category-03
This should clear up any confusion on salvaging parts from the "clunkers".
Quoted from the Disclosure/Salvage/Disposal Questions Section:
Does the vehicle have to be crushed within 180 days?
YES the entire vehicle, including the engine block and drive train (unless the drive train is sold as separate parts), must be crushed or shredded within 180 days.
Any part other than the engine block and drive train (unless the drive train is sold in separate parts) that is removed prior to 180 days may be inventoried and sold separately with no time restrictions.