On August 25, 1997, at 1215 hours mountain standard time, a Walton Velocity STD/FG experimental aircraft, N7VX, collided with terrain following a loss of power due to fuel starvation at Chino Valley, Arizona. The aircraft sustained substantial damage. The private pilot, the sole occupant, received serious injuries. The aircraft was being operated as a personal flight under 14 CFR Part 91 when the accident occurred. The flight originated in Winslow, Arizona, at 1050. Visual meteorological conditions prevailed at the time of the accident. The pilot stated that he was about 20 miles from Sedona when he noticed the engine surging. He said that he tried both magnetos with no luck. He also said he checked the throttle to readjust the mixture and tried the secondary electric fuel pump, which straightened out the problem for a few minutes. As he was looking for a place to land, the engine quit and he tried to land down a dirt road but collided with some scrub oaks. In his initial report to the Federal Aviation Administration Prescott Flight Service Station, the pilot said that something had gone wrong with the fuel line, thus leading to the fuel starvation of the engine. In his written report to the Safety Board, he said he thought it must have been some sort of fuel starvation problem because the gauges showed that the aircraft was almost full of fuel. The aircraft was retrieved from the accident site and brought to the Air Transport facility in Phoenix, Arizona, for further examination. The pilot's insurance adjuster arranged for guard service on the aircraft overnight following the accident and prior to the retriever's arrival. The individuals who were guarding the aircraft stripped off all instrumentation and avionics equipment. In addition, the wings and fuel system had been disassembled prior to the retriever's arrival. The aircraft was examined under the direction of the Safety Board. The engine manufacturer stated the engine was first observed attached to the airframe and appeared undamaged by any pre-mishap mechanical malfunction. The aircraft electrical system was powered by a jumper battery in an attempt to run the engine. The engine was observed to operate in a normal manner with no unusual sounds or vibrations noted. Both magnetos operated normally when the magneto switch was selected from right to left and back to both. There was no instrumentation in the cockpit to record any parameters during the run-up examination. The Safety Board did not to take custody of the wreckage.