On December 15, 1998, at 2010 Central Standard Time, a Hughes 269A, helicopter, N271JB, registered to Wallace State Commercial College, collided with the ground during an attempted takeoff from a heli-pad in Hanceville, Alabama. The instructional flight was operated by Wallace State College under the provisions of Title 14 CFR Part 91 with no flight plan filed. According to the flight instructor, the helicopter sustained substantial structural damage. The flight instructor was not injured, but the student pilot received minor injuries. The accident occurred during the initial takeoff from Hanceville, Alabama. The flight instructor reported that the student pilot was flying the helicopter for a required dark night takeoff. According to the flight instructor, shortly after climbing through 100 feet, the engine lost power. The flight instructor initiated an autorotation (see the attached NTSB Form 6120.1/2 with pilot's statement). During the touchdown phase of the autorotation, the helicopter collided with the ground. During the subsequent landing gyrations, the flight instructor stated that, a main rotor blade severed the tail boom, and the helicopter also rolled over. The helicopter rested in a ditch. No mechanical problems with the helicopter were discovered during the subsequent post-impact examination. The engine assembly was removed from the airframe and installed in an engine test cell. During the functional test run the engine operated smoothly through all power ranges (see attached engine test run).