1. catdynamics
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Falcon down

By catdynamics on August 4, 2008.

Third Falcon launch failed also.
Three satellites lost.

From NASAwatch - with launch video - first stage engine performed, but stage separation failed.
SpaceX homepage has comments - they have raised capital, have booked customers and plan multiple future launches including the Falcon 9 heavy launcher. I hope they get the bugs shaken out soon.

Falcon 1 - 3rd launch attempt press kit - lets just skip over the section on stage separation on page 9...

Payloads were Marshall's NANOSail-D - a solar sail demo
Ames' PRESat - a biological experimental microsat
and DOD's Trailblazer - a Jumpstart series experimental microsat testing rapid development and launch technologies.

Another launch video on youtube - showing launch attempts #1, 2 and 3

Yeah, high power density systems with small margins are hard, and people learn the hard way.
Problem is not that they can't do it, problem is that they risk ending up costing the same as L-Mart by the time they've replaced all COTS parts found to be critical with hand made high quality widgets, plus the time cost and cost of learning by hardware failure.

Chad also comments

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Also the ashes of James Doohan, Scotty of Star Trek fame.