Combine sugar, evaporated milk, butter and salt in medium, heavy-duty saucepan. Bring to a full rolling boil over medium heat, stirring constantly. Boil, stirring constantly, for 4 to 5 minutes. Remove from heat.
Stir in marshmallows, morsels, dried cherries and vanilla extract. Stir vigorously for 1 minute or until marshmallows are melted. Pour into prepared baking pan. Refrigerate for 2 hours or until firm. Lift from pan; remove foil. Cut into 48 pieces.