Major engine failure on take off

OK first, you landed safely, thats number one.  Next lets be sure that you not only file the CSIR, customer service information report, but make copies of your logs as Roger pointed out.  I believe that your distributor is in China, they will be the ones answering you regarding a request for goodwill warranty.  (it can't hurt to ask)  

Be sure to pull the TCU, turbo control unit, thats the box with the 39 pin connector that will be located most likely in the cockpit.  It has 7 channels of information that they will want to look at.  It will log the boost pressure, RPM and other variables to help find out what happened.  

Sorry you had a problem, now it is important to find out why.

Cheers

Japan is serviced by:

Peiport

Rm. 1302, Westlands Centre, 20 Westlands Road, Quarry BayHong KongPhone: 00852 2885 9525Email: sales@peiport.com.hkWebsite: www.peiport.com

We feel the crankcase movement may have had something to do with the failure 

Not sure what you mean by crankcase movement? How did the crankcase move?

A few more photos would be helpful.  Are you saying there was looseness where the connecting rod attached to the crankshaft, which caused all the other problems?  I would expect to see more damage on the side of the piston (hard to see from that one photo – do you have photos of the cylinder wall?).

The damage to the top of the piston still looks like detonation to me.  Suppose the damage happened in the opposite sequence? I.e. imagine if it was detonation that caused the damage to the rings, rod, and crankshaft?

I'm sorry I ment Crankshaft. There is around a 5mm gap in the crankshaft where the number 2 conrod connects to the crankshaft. No other conrod has this gap. Not sure why this has occured. The engine started producting noise soon after lift off then it stopped.