On May 17, 1998, at 1518 central daylight time (All times CDT), a Grumman American AA-1C, N954OU, was substantially damaged when it lost engine power during takeoff and impacted a field adjacent to the runway. The pilot and second pilot were not injured. The 14 CFR Part 91 flight was departing Manhattan Municipal Airport, Manhattan, Kansas, en route to Neosho, Missouri. Visual meteorological conditions prevailed and no flight plan had been filed. The pilot reported that he had topped off the airplane with fuel before departing Manhattan Airport. He reported the total weight at takeoff was 5 to 7 pounds below the maximum gross takeoff weight of 1,600 pounds. The pilot reported that the tower reported the "winds between runways 13 and 21, but favoring runway 13, winds 17 kts w/gusts to 26 kts." The pilot reported that he departed runway 13 and that the takeoff was normal. He reported that when the airplane reached approximately 100 feet agl, "...there appeared to be a loss of power with a resultant loss of climb to [a] negative rate." He reported that due to obstructions, the only option was to make a slight turn to the right. He reported that he maintained full throttle until touchdown. He reported the airplane landed level, but the nose wheel dug into the plowed field which resulted in the airplane nosing over. The tower controller reported that at 1512 he had cleared the airplane for takeoff. At 1513 the airplane aborted the takeoff. The airplane back taxied to attempt another takeoff. The controller reported that the pilot said that he was having a little trouble with the crosswinds and that his airplane wasn't very powerful. At 2018, the controller cleared the airplane for takeoff with winds of 150 degrees at 16 knots. The controller reported the airplane climbed to approximately 20 feet agl. The controller reported the airplane did not gain much, if any, altitude and the just prior to the end of the runway, the airplane made the turn to the right. The controller reported the airplane touched down in a cultivated field approximately 800 feet SSW of the runway 31 threshold on airport property. The right main landing gear and right wingtip dug into the soft soil and subsequently nosed over. The Surface Observation at 1454 was: Winds 180 degrees at 20 knots gusting to 26 knots, visibility 10 miles, clear, temperature 86 degrees Fahrenheit, dew point 60 degrees Fahrenheit, Altimeter 29.97, peak winds 170 degrees at 31 knots at 1415. The airport elevation was 1,056 feet and the Density Altitude was 3,140 feet. The Surface Observation at 1554 was: Winds 190 degrees at 22 knots gusting to 28 knots, visibility 9 miles, clear, temperature 86 degrees Fahrenheit, dew point 63 degrees Fahrenheit, Altimeter 29.93, peak winds 190 degrees at 31 knots at 1530. The Manhattan Airport runway 13 is 3,800 feet long. Runway 21 is 7,000 feet long. The Pilot Operating Handbook for the airplane indicated that the ground roll required to clear a 50 foot obstacle on an 86 degree Fahrenheit day was 1,838 feet. An Airworthiness Inspector from the Federal Aviation Administration examined the airplane and reported that the propeller exhibited signs of power on the engine when it impacted the field. He reported the pilot had informed him that during the last annual inspection of the airplane, two of the cylinders had compression of 65 psi. The pilot reported during a phone conversation that he had taken off in a crosswind condition on runway 13, and added, "...I should have taken off on the longer runway." He reported that on the aborted takeoff the airplane was skipping sideways. He reported that when the airplane experienced an apparent loss of power, the engine did not sputter and there was not a sudden loss of power. He reported that he did not hear a decrease in engine noise. He reported that there was not indication of engine problems during the takeoff run to liftoff. He reported that he did not observe the RPM gage. The pilot reported that the airplane was under powered in hot conditions, but he thought with the reported winds that it should have been alright.