C310R ACFT ON SVFR FLT PLAN LOST R ENG AT 400 FT IN CLB FROM DEP ARPT. RPTR PLT DECIDED TO CLB AND DIVERT TO ANOTHER ARPT. FAA FSDO IS EXAMINING THE SIT AND TOLD RPTR HE SHOULD NOT HAVE ENTERED IMC CONDITIONS AND SHOULD HAVE RETURNED TO THE DEP ARPT.

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I DEPARTED SMD IN FORT WAYNE; IN; AT APPROX XX15. OUR DEST WAS CGX MEIGS FIELD WHICH WAS RPTING IFR CONDITIONS AT THE TIME OF DEP. SHOULD I NOT BE ABLE TO GET INTO MEIGS; I WOULD THEN BREAK OFF AND HEAD TO MIDWAY. I WAS PROVIDED WITH THE GYY ILS 30 APCH TO MINIMUMS. THE CTLR ASKED MY INTENTIONS SINCE MEIGS WAS STILL IFR; AND I SAID THAT I WOULD PROCEED TO MEIGS. THE CTLR ASKED MY INTENTIONS AGAIN AND I INFORMED HIM THAT I WOULD THEN DEVIATE TO MIDWAY -- MY ORIGINAL INTENTIONS. I WAS PROVIDED WITH THE MIDWAY APCH FREQ AND CONTINUED THE APCH AT GYY. I CONTACTED MIDWAY APCH AND WAS THEN DENIED CLRNC AT THAT TIME. I RE-ESTABLISHED COMS WITH GARY AND OPTED TO LAND AT GARY AND WEIGH MY OPTION SINCE I WAS AHEAD OF SCHEDULE. ONCE ON THE GND; I DETERMINED THAT OTHER ACFT HAD DEPARTED GYY SVFR TO MIDWAY SUCCESSFULLY. SUMMARIZING THAT A RWY 12 LEFT TURNOUT TOOK ME OVER THE LAKE; IN THE EVENT I COULD NOT MAINTAIN SVFR CLRNCS; I WOULD HAVE THE OPTION OF REMAINING OVER THE LAKE; PROCEEDING TO MY ORIGINAL DEST; MEIGS; AND DO IT WITHIN THE SVFR RULES. I THEN ASKED FOR SVFR WHICH WAS GRANTED. I DEPARTED GYY RWY 12 AND CLBED TO AN ALT OF APPROX 400 FT AND BEGAN MY TURN AT WHICH TIME I EXPERIENCED A TOTAL FAILURE OF MY R ENG. THE ENG RETURNED WITH A PERCENTAGE OF PWR; HOWEVER; WAS SHUDDERING VIOLENTLY. SOMEWHAT DISTRESSED; I THEN TURNED TOWARD MIDWAY AND ASKED THE GYY TWR IF MIDWAY WAS GOING TO VECTOR ME. THE GARY TWR RESPONDED ACCORDINGLY AND INDICATED THAT I WAS SVFR AND I COULD CONTACT THEM WHEN I WAS CLR OF THE CLASS D AIRSPACE. AT THIS POINT; MY ATTN WAS FIXED ON KEEPING THE AIRPLANE AIRBORNE AND CONTINUING MY FAILED ENG PROCS. I FOUND MYSELF IN THE CLR AND INDICATED TO THE GARY TWR THAT I WAS GOING TO BREAK OFF MY ORIGINAL PLAN AND RETURN TO SECURING MY ACFT. AT THIS POINT I CLBED CLR OF THE CLASS D AIRSPACE AND PROCEEDED TO FWA. IN SUMMATION; THE FAA IS EXAMINING THE POSSIBILITY THAT I ENTERED IMC WITHOUT THE PROPER CLRNC IN HEAVILY TRAVELED AIRSPACE. THE LAYER DURING MY APCH TO GYY; 20 MINS PRIOR TO MY DEP OF GYY; WAS VERY JAGGED STARTING AT 900 FT AGL UP TO A SMOOTH TOP AT 1900 FT AGL. OTHER PLTS WERE RPTING SIMILAR CONDITIONS AT THAT TIME SO IT STANDS TO REASON THAT I WAS IMC DURING MY ENG SECURING SEQUENCE. THE SOUTH BEND FSDO REPRESENTATIVE HAS ALSO INDICATED THAT I MAY HAVE CHOSEN NOT TO CLB AND RETURNED TO GYY. HOWEVER; THIS IS A QUESTIONABLE OPTION SEEING AS I WAS UNFAMILIAR WITH THE AREA AND IN ADDITION; LOW ALT TURNS ARE NOT RECOMMENDED IN A C310 WITH 1 ENG INOP.