The pilot reported that while climbing through about 75 to 100 ft AGL, the engine lost power. He maneuvered the aircraft straight ahead to land beyond a highway. There were transmission lines on both sides of the roadway. The pilot believed he had insufficient airspeed and altitude to safely fly over the lines. Reportedly, the tail contacted a cable while crossing under the first set of wires (a telephone line). The right wing contacted the ground, the aircraft cartwheeled across the highway, then it came to rest in a ditch on the opposite side of the roadway. As the occupants exited the aircraft, a small fire developed in the vicinity of the engine. Within a short time the aircraft was destroyed by fire. An investigation revealed the fuel selector was positioned to both tanks. Water was found in the right tank and in a line leading from the right tank. Rust was found on the inside tangs of the right fuel cap, in the threads of the right quick drain and the carburetor. No other preimpact problems were evident.