On April 28, 2001, at 1341 Pacific daylight time, an experimental Taylor Super Bandit gyrocopter, N8057T, dropped back to the runway and caught fire following a loss of engine power during takeoff from the Yuba County Airport, Marysville, California. The student pilot/builder was operating the gyrocopter on a personal local flight under the provisions of 14 CFR Part 91. The pilot sustained serious burn injuries, and succumbed to complications arising from these injuries about 7 months after the accident. The collision sequence and post crash fire destroyed the gyrocopter. Visual meteorological conditions prevailed, and no flight plan had been filed. Several witnesses reported they observed the gyrocopter make a nose high takeoff. About 50 to 100 feet in the air, the engine sputtered and the gyrocopter fell straight back down to the runway. It burst into flames, and the pilot extricated himself from the wreckage. He fled the runway, on his own power with his clothes on fire, to a truck where medical personnel provided treatment. An inspection of the wreckage revealed that another gyrocopter of the same make and model had tapered fuel tanks that narrowed at the bottom. Fuel lines at the bottom of the tank went from the leading and trailing edge of the tank to the engine. Friends of the pilot inspected two plastic gas cans that the pilot used to fuel the gyrocopter and noticed water in each can. They pointed this out to the investigator, who verified that water was in the plastic gas cans. The investigator estimated about 1/2 gallon of fuel remained in each can. The pilot's wife told him that the gas had been in the fuel cans when they arrived at the airport. The investigator noted water in the bottom of a third can that was full of fuel. The pilot was unable to submit a pilot/operator report.