RedactedNarrative: OPERATOR OF V-1 SAID THEY LAUNCHED FROM THE SOUTH RAMP AT CHICKEN CREEK AND HE HAD RAN THE VENTILATION SYSTEM BEFORE STARTING V-1.  V-1 WAS HEADED IN A S/W DIRECTION AND HAD TRAVELED APP.  .5 MILES WHEN V-1 STARTED LOSING POWER. P-1 SAID SHE SMELLED SMOKE AND THEY NOTICED SMOKE COMING FROM THE ENGINE AREA. BOTH OCCUPANTS GRABBED THEIR P.F.D. AND FLAGGED DOWN A FRIEND IN ANOTHER VESSEL THAT WAS CLOSE. BY THIS TIME THE ENGINE AREA HAD FLAMES COMING FROM IT AND OCCUPANTS DIDN'T FEEL SAFE IN LIFTING ENGINE COMPARTMENT TO TRY TO USE FIRE EXT. BOTH OCCUPANTS BOARDED FRIENDS VESSEL. V-1 BURNED TO WATERLINE AND SUNK.