On August 10, 1994, about 1730 easter daylight time, N1392R, a Grumman AA-5, registered to the student pilot Leonard Ross, crashed after takeoff at Ormond Beach, Florida while on a 14 CFR Part 91 instructional flight. Visual meteorological conditions prevailed and no flight plan was filed for the local flight. The airplane was substantially damaged and the instructor and student received serious injuries. The flight originated about 30 minutes earlier. Witnesses observed the airplane take off from runway 08, heard the engine fail and observed the airplane stall into trees. The airplane then fell vertically to the ground, ripping the roof off of the cockpit. Postcrash examination of the airplane by FAA personnel revealed water and dirt inside the carburetor and rust deposits in the carburetor bowl. The rubber seal around the carburetor air induction flange was found deformed, pinched and not fully sealing the flange. The flight instructor stated the engine had failed to develop full power and 2 days before the accident and the engine had been worked on by local maintenance personnel. The local maintenance shop work order stated that both the carburetor and carburetor float had been removed and reinstalled.