On August 25, 2000, about 0930 central daylight time, a Cessna 182Q, N759CW, registered to and operated by a private owner as a Title 14 CFR Part 91 personal flight, settled and impacted the runway during takeoff/initial climb in Fayetteville, Tennessee. Visual meteorological conditions prevailed and no flight plan was filed. The aircraft incurred substantial damage, and the commercial-rated pilot and one passenger sustained no injuries. The flight was originating at the time of the accident. The pilot stated that after rotation, and during climbout, at an altitude of about 10 feet above the runway the airplane's engine lost power, and the airplane settled and impacted the runway. The pilot further stated that she did not have enough runway remaining so she continued the takeoff, executing a go-around, and made an otherwise uneventful landing. After the landing, she noted that the propeller, nose gear, firewall, and skin were damaged. One witness, an FAA licensed mechanic, with inspection authorization, stated that he was in the opened hangar, located about mid-length of the runway, and he observed the takeoff. The mechanic further stated that the hangar is about 300 feet to the side of the runway centerline, and he could clearly hear the aircraft's engine. He said he saw the airplane lift off about the mid-length of the runway, and ascend to an altitude of about 10 feet, prior to descending and impacting the runway with a loud popping sound. He said that after impact, the takeoff and climbout was continued, and the aircraft returned, and a landing was executed on the same runway from whence it had departed. The mechanic also stated that when the aircraft landed after the go-around he observed the passenger seated in the left seat, and the pilot seated in the right seat. The mechanic said that during the takeoff, the aircraft's engine sounded normal, as if it had been developing full power the whole time. He said there was only a slight fluctuation in sound that corresponded with the loud popping noise, as the propeller struck the runway. He said that when the popping noise occurred, about 2,000 feet of available runway remained. In addition, he stated that the fence at the end of the runway is located about 600 feet beyond the end of the runway, and there is only a slight drop off from the runway to the grass, with no collision hazards between the end of the runway and the fence. The mechanic also conducted a postaccident examination of the aircraft and stated that he checked the ignition, induction and fuel systems, and found no preexisting problems with the aircraft that would have caused the accident.