On September 16, 1998, about 0800 eastern daylight time a Hopkins Buckeye Dream Machine 582, an unregistered powered parachute, collided with trees during maneuvering flight near Franklin, North Carolina. The ultralight aircraft was operated by the owner/pilot under the provisions of Title 14 CFR Part 91, and visual flight rules. Visual meteorological conditions prevailed. A flight plan was not filed for the personal fight. There were minor injuries to the non-certificated pilot, serious injuries to his passenger, and the ultralight aircraft was substantially damaged. The flight departed the Franklin Airport earlier the same morning, at an undetermined time. According to the pilot, he had taken his passenger to view her property from the powered parachute. The pilot stated he miscalculated the weight penalty of the passenger. While maneuvering the ultralight aircraft inside a "cove," the aircraft could not climb above the tops of trees. Engine power was reduced and the aircraft struck the top of a tree. The parachute snagged limbs which broke, and the vehicle fell about 20 feet to the ground. The pilot stated that the weather was not a factor. He estimated the clouds were above 1,000 feet, and he flew around patches of fog that were lifting during the flight.