On November 11, 2003, about 1220 Pacific standard time, a Zivko Edge 540-T, N540RC, overran the runway and impacted terrain while making an emergency landing at Mesa Del Rey Airport (KIC), King City, California. The owner/pilot was operating the airplane under the provisions of 14 CFR Part 91. The airline transport pilot, who was the pilot under instruction (PUI), and the certified flight instructor pilot sustained serious injuries; the airplane sustained substantial damage. The local aerobatic instructional flight departed King City, about 1210. Day visual meteorological conditions prevailed, and no flight plan had been filed. The primary wreckage was at 36 degrees 13 minutes north latitude and 121 degrees 07 minutes west longitude. The pilot reported that about 5 minutes after takeoff he noticed a loss of oil pressure, followed by a loss of power. He decided to return to KIC, and while en route back to the airport the windscreen became obscured by engine oil. While landing at KIC the airplane landed long and was unable to stop before the airplane departed the runway environment. The airplane came to rest north of the departure end of runway 29 in a ditch. The aircraft was recovered for further investigation. The engine was examined on December 3, 2003, at Plain Parts, Pleasant Grove, California. During the engine examination the crankshaft was found cracked completely through diagonally across the counterweight hanging blade cheek located between connecting rod journal numbers five and six. The crankshaft part number was 13E27622 and the serial number was V5379 23712 CT. Textron Lycoming was contacted regarding the crankshaft serial number and applicability to the Lycoming mandatory service bulletins (552 and 553) and Federal Aviation Administration (FAA) airworthiness directive (AD2002-19-03) relating to crankshaft manufacturing defects causing catastrophic in-service crankshaft failures. They said the crankshaft by serial number was a "small journal six" and therefore, was not affected by the recall or inspections required by both the service bulletins or airworthiness directive. Lycoming service bulletins 552, 553, and airworthiness directive 2002-19-03 relate specifically to engines rated at 300 horsepower (hp) and above. The "small journal six" crankshaft is not a 300 hp crankshaft. It is typically utilized in engines producing no more than 260 hp. Textron Lycoming originally manufactured this crankshaft for installation into an AEIO-540-D4A5 model engine rated at 260 hp and 2,700 rpm. Therefore, neither the mandatory service bulletin nor the airworthiness directive were applicable. This engine was modified for installation in experimental airplanes by an engine overhaul shop, Lycon Engines, Inc., and carried a data plate naming the shop as the manufacturer and labeling the engine as a AEIO-540-EXP. The engine closely resembles a Lycoming AEIO-540-L1B5 model rated at 300 hp and 2,700 rpm, but with other modifications proprietary to the overhaul shop that increased its horsepower rating to 340 hp. According to the Zivko Edge 540 T specification sheet the engine is a modified IO-540 to produce 340 hp. The National Transportation Safety Board investigator-in-charge released the wreckage to the owner's representative.