Personal Spaceflight blog is reporting that TrueZer0 failed on their first attempt at the LLC Level 1 Competition.
Update 12:10 pm MDT: The vehicle took off and flew upwards for several seconds, then lost power and crashed. There was a small fire that was put out, and no injuries reported.
Update 1:45 pm MDT: TrueZer0 team members explained that the vehicle lifted off well, but started spinning faster and faster around its z-axis, forcing them to abort; that turned off the rocket and caused the vehicle to crash. They said the believe the vehicle to be a total loss, but something that only set them back about $10,000. They seem willing to give it a try again next year.
More pictures at: http://www.personalspaceflight.info/2008/10/24/truezer0-flight-attempt/