On October 10, 1997, approximately 0900 mountain daylight time, an Aerostar International S-60A hot air balloon, N7154E, sustained no damage during a hard landing at Albuquerque, New Mexico. The commercial pilot and two passengers were not injured. A third passenger, however, sustained a serious injury. Visual meteorological conditions prevailed, and no flight plan had been filed for the personal flight conducted under Title 14 CFR Part 91. The flight originated in Albuquerque approximately 0830. The pilot said this was his second flight of the day. He gave his passengers a preflight briefing that included the positions to assume during landing. After flying for about 30 minutes, a landing approach was initiated. He instructed the passengers to assume the landing position, which they did. The position consists of facing the direction of travel, knees slightly bent, and grasping the handholds. The pilot said the landing "was (made) at 200 feet per minute." The pilot (who is a physician) said that when the balloon touched down, one passenger fell to a squatting position and her foot was "laterally rotated 45 degrees," sustaining "an open reduction (fracture) with internal fixation" of her ankle.