On May 11, 1999, about 2000 Eastern Daylight Time, a Piper PA-22-108, N5938Z, impacted the ground during climbout from a private grass airstrip, in Chambersburg, Pennsylvania. The certificated private pilot and passenger were not injured. Visual meteorological conditions prevailed and no flight plan was filed for the local flight conducted under 14 CFR Part 91. The pilot stated in a telephone interview that the airplane originated at the Chambersburg Municipal Airport, Chambersburg, Pennsylvania. The airplane was flown in the local area for about an hour, then the flight proceeded to Rock Top Airport to practice touch and go landings. After landing, the airplane was parked for about 45 minutes. The airplane was then started again and taxied to Runway 31, where a run-up was conducted. The engine was accelerated to 1700 Rpm's, and a check of the left and right magnetos, along with the carburetor heat, was performed. No discrepancies were observed, and the airplane departed. The total time from starting the engine to departure was estimated at 5 minutes. As the airplane began to climb normally, the pilot mentioned to the passenger that the engine was performing quite well. At about 150 feet above the ground, the engine began to decelerate, "as if you pulled the throttle back to idle." The pilot nosed the airplane over to gain airspeed, and began to look for a place to land. The airplane touched down on all three wheels, in a dry creek bed, rolled about 50 feet, proceeded up a grass hill, then hit a fence post, shearing off the nose gear. The airplane continued past the fence and hit standing trees with the left wing, shearing the wing off. The airplane then nosed over and came to rest inverted. The pilot and passenger exited the airplane, and observed large amounts of fuel draining from the left side of the fuselage. The airplane was rolled back onto the main landing gear, stopping the fuel leak. Examination of the wreckage at the accident site by a Federal Aviation Administration (FAA) Inspector revealed that there was about 5 gallons of fuel remaining in both wing tanks. The engine was removed from the airframe and shipped to Textron Lycoming, Williamsport, Pennsylvania, for a test run under the supervision of a FAA Inspector. Prior to the test run, crankshaft continuity and thumb compression were confirmed. The engine was then placed on a test stand and successfully run.