On October 6, 1997, approximately 0800 mountain daylight time, a Balloon Works Firefly 8-24 balloon, N74056, was not damaged during a normal landing near Albuquerque, New Mexico. The pilot and one of his passengers were not injured; however, the second passenger received serious injuries. The balloon was being operated by the owner under Title 14 CFR Part 91. Visual meteorological conditions prevailed for the local personal flight which originated from Albuquerque, New Mexico, approximately 30 minutes before the accident. A flight plan had not been filed. According to the pilot, the "approach to landing was normal." He stated that the balloon "touched down, bounced once, and came to a normal upright stop." The injured passenger (the pilot's wife) reported to the Investigator-In-Charge (IIC) that "she had her arm around an upright and was holding on very hard." She stated that she believed that the "landing was not a difficult landing," but she was having "some difficulty with my [her] knees" and did not have them bent as the pilot had instructed. Subsequently, during the landing sequence, she fractured her arm.