FLT INSTRUCTOR AND STUDENT DEPART RWY WHEN SIMULATED ENG FAILURE IS NOT RECOGNIZED IN TIME BY STUDENT NOR PROPERLY SALVAGED BY INSTRUCTOR.

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WHILE VOLUNTEER FLT INSTRUCTING DURING AN FAA 'WINGS WEEKEND' IN LOU; I WAS ASSIGNED A PVT PLT; INST AND MULTI-ENG RATED PLT. PLT HAD A PA34. WE HAD A PREFLT TALK OF APPROX 1 HR. WE GOT IN THE AIRPLANE AND TAXIED OUT FOR TKOF. ON THE TKOF ROLL; I RETARDED THE R ENG MIXTURE AT ABOUT 10 KTS; SIMULATING R ENG FAILURE. THE PIC FAILING TO RECOGNIZE THE SIMULATED FAILURE; I PULLED BOTH THROTTLES TO IDLE; PUSHED THE R MIXTURE FULL RICH; AND PUT AS MUCH L RUDDER AS POSSIBLE. I HAD NO BRAKE PEDALS ON THE R SIDE. THE ACFT WENT OFF THE R SIDE OF RWY 6; STRIKING THE RWY SIGN AND KNOCKING IT OVER. WE LET THE TWR KNOW WE WERE ABORTING THE TKOF AND NEED AUTH TO TAXI BACK TO THE RAMP. THE TWR SAID THEY NOTICED FUEL LEAKING OUT OF THE R WING. ONCE WE SHUT DOWN AND GOT OUT; WE NOTICED A SLICE UNDER THE R WING (COMING FROM THE ACFT HITTING THE RWY SIGN) WITH FUEL LEAKING OUT. I ASKED THE RAMP PERSON TO PUT A BUCKET UNDER THE WING TO COLLECT THE FUEL; AND WE DRAINED THE REST OF THE FUEL OUT. I CALLED THE TWR ON MY CELL PHONE AND GAVE THEM SOME INFO. ABOUT 1 HR LATER; THE NTSB CALLED TO ASK SOME QUESTIONS. THERE WERE NO INJURIES. THE CONTRIBUTING FACTORS WERE THE PIC FAILING TO RECOGNIZE THE SIMULATED ENG FAILURE AND MYSELF NOT RETARDING THE THROTTLES FAST ENOUGH TO MAINTAIN DIRECTIONAL CTL; ESPECIALLY WITH NO BRAKE PEDALS ON THE R SIDE. AS FAR AS CORRECTIVE ACTIONS IN THE FUTURE; MAYBE NO ENG FAILURE SIMULATION ON THE GND WITH NO BRAKES ON THE R SIDE.