On November 9, 1999, about 1500 Eastern Standard Time, a Bellanca 17-30A, N93688, was substantially damaged after a forced landing at the Canandaigua Airport, Canandaigua, New York. The certificated commercial pilot received minor injuries. Visual meteorological conditions prevailed, and no flight plan was filed for the personal flight conducted under 14 CFR Part 91. According to a Federal Aviation Administration (FAA) inspector, the pilot stated that he lifted off about three-quarters of the way down Runway 31, a 3,200 foot long asphalt runway. When the airplane was about 65 feet above the runway, the pilot raised the landing gear, and the engine suddenly quit. The pilot lowered the nose of the airplane and attempted to land on the remaining runway. The airplane touched down, bounced back into the air, and then floated over a road located at the end of the runway. While in the air a second time, the engine began to develop partial power for a few seconds and quit again. The airplane then landed in a plowed field. The pilot additionally stated to the inspector that this was the first take-off of the day. The fuel was drained and the engine run-up/magneto check was normal. Examination of the airplane by a FAA inspector, on November 17, 1999, revealed that both the left and right fuel filler caps located on the wing were of the rubber "donut" type, with a locking lever on top. With the lever in the locked position, the filler caps could be lifted out of the ports with no resistance. A visual inspection looking down into the fuel tanks through the filler ports revealed water and sand/dirt on the bottom of the tanks. The fuel quantity probes of both tanks were removed to provide better visual inspection of the fuel tanks. "Excessive" amounts of water, sand/dirt, and a gel-like substance were noted in the tanks. All six wing drain petcocks had plugs inserted into them and could not be sumped. When the gascolator was drained into a glass jar, water, sand/dirt, and a rubber-like substance were observed through the jar. It was estimated that the sample collected in the jar contained about half contaminates and half fuel. The fuel in jar appeared "very dull blue in color and not like the bright blue of fresh, clean 100LL." The fuel line that supplied fuel to the fuel pump from the firewall was removed and placed into a glass jar. The fuel pump was turned on and a sample of fuel from the pump was collected, which also contained contaminates. The fuel line to the throttle body unit was drained into a glass jar. The sample only contained water and contaminates. No fuel was present. The fuel filter located at the throttle body was removed and drained. The filter contained sand and rubber-like particles. The engine driven fuel pump was removed from the accessory section and all the chambers in the pump were contaminated with water and sand/dirt particles. The fuel distribution manifold was disassembled and examined. The screen portion of the manifold contained contaminates. The bottom of the manifold contained water and a sludge/gel-like substance within. According to the airplane's logbooks, the most recent annual inspection was performed on December 8, 1997. On July 20, 1998, an entry in the logbook described maintenance action to clean the fuel screen and filters. The pilot provided the FAA a receipt dated the previous year, November 17, 1998, that contained a discrepancy of "engine runs rough." The corrective action for the discrepancy was to clean and test the spark plugs per the request of the owner. The engine was tested and continued to run rough. The mechanic then checked the fuel nozzles and found the number 4 nozzle partially clogged. The nozzle was cleaned and reinstalled. The fuel servo screen was inspected and found absent of debris. The fuel tanks and fuel bowl were sumped and absent of contamination. The magneto timing was observed at 24 degrees and reset to 22 degrees. The engine was ran a second time and tested satisfactory. Research of the airplane records revealed that AD 87-11-01 R1, issued to preclude engine power loss due to either the accumulation of water or other contaminates in the fuel system, was not complied with. The AD required installation of an appropriate revision to the Airplane Flight Manual, and installation of permanent placards at specified locations. The FAA inspected the airplane again on November 18, 1999, and confirmed that the AD was not physically complied with. Further inspection revealed that the cables and release assembly that drains the gascolator was disassembled, rendering the quick drain inoperative. The pilot stated that the quick drain assembly had been removed because it was frozen and did not work. The pilot additionally stated that the only drains utilized for sumping the fuel system were two petcocks located aft of the gascolator.