On August 15, 1998, at 1525 central daylight time, a Valentin GMBH Taifun 17E (Motorglider), N17NT, operated by a private pilot, experienced a collision with trees on initial climb after takeoff from runway 5 (4,100' X 75' dry/asphalt) when the airplane drifted to the right of the runway, at Lake Geneva, Wisconsin. The pilot reported no injuries. The personal 14 CFR Part 91 flight was operating in visual meteorological conditions. No flight plan was on file. The flight was originating at the time of the accident with the intended destination of Kenosha, Wisconsin. The pilot said in his written statement that the airplane climbed to an altitude of 100 to 150 feet during the initial climb, but began to settle. He said that he considered turning back to the runway; however elected to maintain wings level. The airplane settled into the trees. He indicated that rotation speed was 43 knots and he maintained 60 knots until impact. One eyewitness told investigators that he watched the airplane takeoff and revealed that on liftoff, he observed the right wing drop and the airplane to start a right turn. He said that he observed the airplane wings to level; however, he said that the airplane was to the right of the runway. He said that at this point he observed "the pitch attitude of the aircraft look abnormally high." The witness said that the airplane continued to climb until impact with trees. A second eyewitness related to investigators similar observations as the first witness, adding that the airplane climbed to an "altitude of 50-60 feet, stalled and pancaked into the trees." An examination of the airplane subsequent to the accident failed to reveal any pre-accident anomalies with the airplane or its systems.