WHILE BOARDING PSNL FOR A LAUNCH, THE BALLOON (BLN) WAS INFLATED & TETHERED TO A VEHICLE WITH A QUICK RELEASE LINE. WINDS AT THE TIME WERE ESTD TO BE ABT 7 KTS & SLIGHTLY GUSTY. DRG THE LAUNCH, THE PLT ADDED HEAT TO TAKEOFF & SIGNALED FOR A RELEASE, BUT THE QUICK RELEASE LINE FAILED TO RELEASE. THE BLN SETTLED TO THE GND & 'BOBBED' UP & DWN 2 TIMES. THE PLT RPRTD THAT AT THE HEIGHT OF A BOUNCE (ABT 6 TO 10 FT), ALL 28 OF THE ADVANCED FIBER TECHNOLOGY (AFT) KEVLAR SUSPENSION CABLES FAILED. THE BASKET FELL TO THE GND & THE ENVELOPE ROSE TO ABT 500 TO 700 FT, THOUGH THE RED LINE STAYED ATTACHED TO THE BASKET & OPENED THE DEFLATION PORT; 2 OF THE 7 OCCUPANTS RCVD SERIOUS INJURIES. AN EXAM REVEALED STRENGTH DEGRADATION OF THE KEVLAR CABLES DUE TO HEAT EXPOSURE. THE BLN HAD 240 HRS OF FLT TIME. STRENGTH LOSS WAS FND IN SOME AFT/KEVLAR CABLES OF OTHER BLNS. ON 11/28/90, AEROSTAR INTL SVC BULLETIN #129 WAS ISSUED TO RETROFIT ALL S-66A & S-77A BNS WITH STEEL CABLES.