Appreciate the help.
The Austrian Rail pass only covers trains in Austria. The parts of the trip in Germany would not be covered by an Austrian pass.
Thank you, Lee! So if I board the train in Vienna bound for Munich, with my Austria pass, I need to purchase an additional ticket from the German border to Munich? Grateful for your help.
You may get a better per person price buying ÖBB’s Einfach-Raus Ticket. If you have a group of 2 (min) to 5, the group goes for a TOTAL of 35€. No advanced purchase needed and you can buy the ticket at staffed ticket offices or over the internet.
http://www.oebb.at/en/Tickets/Groups/Einfach-Raus-Ticket/index.jsp
"You may get a better per person price buying ÖBB’s Einfach-Raus Ticket."
However, with the regional trains you have to use with the Einfach-Raus-Ticket, the trip takes over 6 hours from Vienna to Salzburg! Express trains (RailJet, ICs), which you can use with the railpass, only take 2½ - 3 hours.
The Einfach-Raus-Ticket is only valid in Austria, so you still have the problem of how do you get from Salzburg to Munich. You can purchase the Bayern-Ticket in Salzburg (or online from the Bahn) for 23€ single, 4€ more each for travelers 2-5; Salzburg Hbf to Munich Hbf takes about ½ hr longer (2 vs 1½) with the regional trains that you you are limited to with the Bayern-Ticket.
It is also possible to purchase a Savings Fare ticket online from the Bahn for Vienna to Munich on express trains for as little as 39€/adult and the trip takes just over 4 hours.