On June 17, 1998, at 1300 hours Pacific daylight time, a Cessna 177B, N34416, departed the left side of runway 21 on takeoff and impacted the taxiway at the Fallon, Nevada, airport. The aircraft, operated under the provisions of 14 CFR Part 91, sustained substantial damage. The private pilot/owner, the sole occupant, was not injured. Visual meteorological conditions existed for the local area personal flight that was originating at the time of the accident. No flight plan was filed. The pilot reported that while practicing a short field takeoff the aircraft drifted left of centerline. He stated that he continued to hold in the left rudder. The pilot reported that he was too late with the application of the right rudder input to correct for the left drift. The aircraft became airborne and proceeded into a left turn impacting the taxiway. The pilot reported calm wind conditions at the time of the accident and no pre-existing anomalies with the aircraft.