On May 28, 1998, at 1830 eastern standard time, a Cessna 177RG, N1849Q, operated by a private pilot, was substantially damaged after impacting the terrain shortly after takeoff from the Lazy K Airstrip, near Tocsin, Indiana. The pilot and one passenger reported no injuries. The personal flight was being conducted under 14 CFR Part 91. Visual meteorological conditions prevailed and no flight plan was on file. The planned local flight was originating at the time of the accident. The pilot reported the engine run-up and takeoff were normal. He stated the engine was running normally, but the airplane did not seem to want to climb. The pilot stated he raised the landing gear near the end of the runway at which time the stall horn activated. He then raised the flaps from 10 degrees to fully retracted and made a turn to avoid wires ahead of him. He stated the airplane then "mushed" into the terrain. Post accident inspection of the airplane and engine by an Inspector from the Federal Aviation Administration, South Bend, Indiana, Flight Standards District Office failed to reveal any reason why the airplane would not have been capable of obtaining a normal rate of climb during the takeoff. The airplane impacted the terrain approximately 1,300 feet from the end of the runway. The 1972 Cessna 177RG Owner's Manual states stall speed of 66 miles per hour (MPH) with flaps up, power off and a stall speed of 57 MPH with flaps extended , power off. Takeoff procedures state to climb out at 75 to 85 MPH after which time the landing gear and flaps should be retracted. The maximum performance takeoff procedures state that flaps should not be retracted until "accelerating to at least 80 MPH."