On September 15, 2002, about 1515 Alaska daylight time, a Cessna 207 airplane, N207DG, sustained substantial damage when the airplane went off the end of the runway during an aborted takeoff at the Circle City Airport, Circle, Alaska. The airplane was being operated as a visual flight rules (VFR) cross-country on-demand passenger flight under Title 14, CFR Part 135, when the accident occurred. The airplane was operated by 40 Mile Air LTD., Tok, Alaska. The commercial certificated pilot, and the two passengers, were not injured. Visual meteorological conditions prevailed, and a VFR flight plan was filed from Circle to Tok. During a telephone conversation with the National Transportation Safety Board (NTSB) investigator-in-charge (IIC), on September 15, the chief pilot for the operator reported that the pilot was departing runway 15 at Circle. About 1,800 feet after beginning the takeoff run, about 65 knots indicated airspeed, the pilot said he raised the nose for lift-off, but the airplane did not become airborne. He then aborted the takeoff, and applied the brakes, but the airplane went off the end of the runway into an area of marshy tussock grass. The nose gear strut collapsed, and the airplane came to rest about 75 feet beyond the departure end of the runway. In a telephone conversation with the IIC on September 17, the pilot, who is the director of maintenance for the operator, indicated that prior to takeoff, he selected 10 degrees of flaps. Following the accident, he noticed the flaps were only deployed to about 3 or 4 degrees of travel, even though the flap indicator was still set at 10 degrees. The pilot said he moved the flap lever several times up and down, but was only able to achieve 10 degrees of flap deployment by moving the flap lever to a 20 degree setting, before selecting a 10 degree setting. In the Pilot/Operator Aircraft Accident Report (NTSB Form 6120.1/2) submitted by the pilot, the pilot indicated that the airplane did not have any mechanical malfunction. In the optional safety recommendation portion of the report form, the pilot indicated that the "flap position could have been checked visually before takeoff." Also in the NTSB Form 6120.1/2, the pilot reported that following the accident, as he left the airplane to call his company operations, he noticed the wind was favoring runway 33. When he returned to the airplane, he reported the wind was again favoring runway 15. On October 8, 2002, in a telephone conversation with the IIC, the pilot reported the airplane received damage to the lower engine cowling/fuselage structure, nose gear strut attach point/structure, lower firewall, and propeller. Runway 15 at the Circle City Airport has a gravel surface, and is 3,000 feet long by 60 feet wide.