Falcon 1 flight encounters problems

We had a successful liftoff and Falcon made it well clear of the launch pad, but unfortunately the vehicle was lost later in the first stage burn.

At T+25s, a fuel leak of currently unknown origin caused a fire around the top of the main engine that cut into the first stage helium pneumatic system. On high resolution imagery, the fire is clearly visible within seconds after liftoff. Once the pneumatic pressure decayed below a critical value, the spring return safety function of the pre-valves forced them closed, shutting down the main engine at T+29s.

The Falcon, designed and run by SpaceX, is hoped to reduce the cost of launch by a factor of ten.