Alan
Ed Miller's Alien Enterprises Monocopter 24 flies on Estes D11P or AT 24 mm motors, it retails around $25 and uses carbon fiber. Estes E9s also work but do in fact burn through the outside of the cardboard casing necissitating the business end of the motor sticking out past the motor tube so as not to burn through themotor tube. Email Ed for his catalog. Also Apogee has a book regarding the theory of monocopters which will help to understand their intricacies.
Monocopters, tricopter, bicopters, cooling fans which use horizontal rocket thrust provide their lift via aerodynamics. I've never seen a multi engine fan failure, my guess is there are issues concerning the out of balance machine soldiering on, but it's only a guess.
In the few monocopter failures I've seen the motor didn't end up very far from the rest of the wreckage as it just tumbled after rolling through the inside diameter of flight. The larger concern is the failure of the launch pin, which I've also seen, much like a rocket having launch lug failure at ignition, which is far more of a concern than the motor flying off. NO MONOCOPTER USING A G MOTOR AND HIGHER SHOULD BE LAUNCHED WITHOUT A STEEL LAUNCH PIN!! The video was posted some time ago.
As an aside, scale drag racing is now using rocket powered turbine motors, whereby the rocket boost turns a tubine blade which turns the wheels, and not using the motor thrust alone. How they control the cars is something I've not yet seen.
Chuck