During a preflight examination, the pilot identified fuel contamination from water, in his airplane's fuel tanks. He removed approximately one quart of water each from the right wing, left wing, belly drain and engine strainer. He thought he removed all the water from the fuel system and started the engine. He performed an engine run up at twenty-two hundred revolutions per minute. After a five minute engine run, the pilot decided the airplane was suitable for flight and initiated a take-off. Upon reaching an altitude of four hundred feet, the engine lost power. He entered an emergency descent and forced landing, subsequently impacting several trees and eventually the terrain. The airplane sustained substantial damage to wings, fuselage, and empennage.