On July 23, 1998, at 1913 central daylight time, a Cessna 172N, N4813D, sustained substantial damage after losing engine power during take-off and impacted the terrain near Howell Airport, New Lenox, Illinois. The pilot stated that the engine quit at approximately 300 feet above ground level at which time she began emergency landing procedures. The CFI pilot was not injured and the passenger received minor injuries after the airplane nosed over during a forced landing. The airplane was being operated as an instructional flight under 14 CFR Part 91 when the accident occurred. The flight originated at Midway Airport, Chicago, Illinois a 1745. Visual meteorological conditions prevailed and no flight plan was on file. The flight instructor reported she and the student pilot had departed Midway airport and flew to Lansing Airport to practice full stop landings. They departed Lansing and flew to Howell Airport. Approaching Howell Airport, the instructor gave the student pilot a simulated engine failure. The instructor reported she pulled the carburetor heat on during the simulated engine failure. The instructor reported the student pilot landed the airplane uneventfully at Howell Airport on runway 13. The instructor reported that the airplane was taxied back for takeoff on runway 13. She reported that, "After takeoff and during the climb out, the engine didn't produce power to sustain lift, at that point, I took the a/c over, avoided homes, a barn, and landed it in a nearby field. Without any altitude and limited airspeed we landed against the furrows which flipped us over...." The student pilot, who had about 10 hours of total flight time, reported that, "All of the readings on the instruments looked normal and all the engine gauges were in the green. Upon reaching air speed, about 55 KTS, the aircraft began its lift. Everything at this point was that of a normal departure, wings level, aircraft in line with the departing runway, and the proper angle of attack." He reported, "I am not sure of the exact amount of time that passed, but moments later the engine stopped running. There was no warning, alarm, or indication of any kind that gave knowledge or concern of the engine experiencing any difficulties or of its stopping." The pilot reported to a Federal Aviation Administration (FAA) Operations Inspector that during takeoff, she did not notice anything abnormal during takeoff roll or in the initial climb. When the aircraft reached about 300 feet, a crosswind turn was started. The FAA statement reported that, "At that point, the stall warning horn activated and [the instructor pilot] took the controls leveling off the aircraft and applying power. The engine did not respond and [the instructor pilot] maneuvered the aircraft for a forced landing in the bean field." An Airworthiness Inspector from the Federal Aviation Administration inspected the airplane. An engine run was performed. The engine was successfully started three times. On the third start the engine was run at 1,900 RPM's. The carburetor heat was pulled on and a drop of 125 RPM's was registered. The engine was not run at a higher RPM due to the propeller blade tips being bent and curled.