On July 23, 1996, at 1430 eastern daylight time, a Corben Baby Ace C-1 ultralight aircraft, N75H, lost engine power shortly after takeoff at Greater Portsmouth Regional Airport, in Portsmouth, Ohio. The ultralight aircraft sustained substantial damage during the forced landing. The pilot, the sole occupant, received minor injuries. Visual meteorological conditions prevailed and a flight plan was not filed. The local flight was conducted under 14 CFR Part 91. The flight originated at Portsmouth, Ohio, at approximately 1428. The pilot reported that he had just purchased the ultralight aircraft, and a new engine had been installed. He stated that the engine "...had trouble cutting out..." so he had a mechanic examine the carburetor. He stated that "...it seemed to run OK." The pilot reported that he intended to taxi the ultralight aircraft to accumulate engine time. He stated, "I didn't really mean to take it up...[but a] gust of wind..." caught the wing and the ultralight aircraft lifted off. He stated that he decided to go around the traffic pattern, but as the ultralight aircraft approached the airport boundary, the engine sputtered, then lost power. The pilot stated that during the subsequent forced landing the landing gear and propeller struck an embankment. The ultralight aircraft was examined by a Federal Aviation Administration (FAA) Inspector after the accident. The FAA Inspector stated that when he examined the fuel tank, he observed sludge and water in the lower portion of the tank. The FAA Inspector reported that it was not possible to drain the fuel out of the fuel drain due to a clogged fuel drain. Further postaccident examination revealed no evidence of preimpact mechanical malfunction.