On March 16, 1997, at 0745 hours mountain standard time, an Aerostar RX7 balloon, N71150, participating in a hot air balloon rally, collided with another balloon during landing in Tucson, Arizona. The balloon was substantially damaged. The pilot/owner was seriously injured, one passenger had minor injuries, and the other passenger was not injured. Visual meterological conditions existed for the local hot air balloon rally that originated at 0730. According to the pilot, participants in the hot air balloon rally received full weather briefings for Ryan Field Airport, Davis-Montham AFB, and the Ina Road Heliport, all in Tucson, before the rally began. In a telephone interview, the pilot reported the winds were forecasted at 7 knots until 1200. He stated that he had flown both Friday and Saturday and the weather conditions were good, and that Sunday seemed like the weather would be more of the same. He realized that the wind was in fact gusting to 20 knots, and made the decision to land. The balloon came in too fast and low and hit hard. On landing the pilot's leg went through the gondola. During the touchdown sequence, the gondola twisted, lifted off at an angle, caught the edge of another balloon already on the ground, ripping holes in the other balloon's envelope. No one else on the ground was injured. The pilot and passengers of the other balloon were not in the balloon during the accident sequence. According to the other pilots who witnessed the accident, the pilot was landing in a crowded area and made what appeared to be a normal landing, bounced, and then collided with the other balloon. No adverse weather conditions were noted by the witness.