Question: Situation: The server calls accept(). The client sends a SYN to the server. The server gets the SYN, and then sends a SYN/ACK back to the client. However, the client now hangs up / dies, so it never sends an ACK back to the server.

What happens? Does accept() return as soon as it receives the SYN, or does block until the client's ACK is returned? If it blocks, does it eventually time-out?

Answer: 
It will eventually time out, because that scenario is in actual face a DoS (Denial of Service) and the resource for the accept returned to for use by the operating system. if might cause the master socket to block, since client is connected to the server once the accept returns with a valid file discriptor 

In the event that a error occurs during the connection from the client, the value errno will be set and a good idea would be log or display an error message. , however read the man pages it is the best source of info in most cases.
In the case there is a failure, say, a timeout because a handshake does not complete, it will return -1 and set errno. I believe, after looking at the man page, that it will set errno to ECONNABORTED.