On March 31, 2002 at 1242 eastern standard time, a Diamond Aircraft Industries DA 20-A1, N122SE, registered to Kissimmee Air Center, Inc, and operated by the commercial pilot, collided with terrain while attempting to land at Naples, Florida, following a loss of engine power after takeoff. The personal flight was operated under the provisions of Title 14 CFR Part 91 and visual flight rules. Visual meteorological conditions prevailed and no flight plan was filed. The airplane sustained substantial damage, and the pilot received serious injuries. The flight was originating at the time of the accident. The pilot taxied to taxiway A-1for an intersection departure from runway 5. According to the pilot, shortly after liftoff from runway 5 the engine lost power. The pilot attempted to return to the departure end of the runway at approximately 100 feet above ground level and collided with the ground in abour 400 feet adjacent to the runway. According to witnesses, there was still about one third of the 5,000 foot runway remaining that he could have landed on. Examination of the engine logbooks found that the engine had accumulated 1900 hours total time, which was 700 hours past its Time Between Overhaul (TBO) time. Examination of the propeller found the blades separated and the spinner and blade root ends still attached to the propeller shaft. During the subsequent functional check of the engine assembly, the engine was mounted to a test stand and the damaged propeller assembly was replaced with a test propeller assembly. The engine started and was allowed to run to operational temperature. Both ignitions were checked and operated as normal. The engine was run to full throttle and obtained 5325 RPM on an optical tachometer. The engine operated for about 10 minutes, with no indication of power loss. The pilot and Kissimmee Air Center were sent the pilot/operator aircraft accident report form for completion; at the time of the completion of this report, the pilot/operator aircraft accident report had not been received.