etg,
I would take the word of carfax over the dealer. The dealer wants to get rid of his vehicle and will tell you anything to do so. Fact is that a salvage title isn't issued just for the hell of it
And a car has to sustain major damage to even get a salvage title, in the exact words 'the damage to the vehicle has to be more extensive than the fair market value of the vehicle'
I would say steer clear, lots of other good H2's out there