From Inertiasoft's FAQ: http://inertiasoft.com/fsonefaq/index.html

When helis crash, the engine does not startup like I would expect on reset. What's happening here? (Q1032-FS1)

* When helis crash in FS One, pressing Reset puts the helis back to the starting position. Reset does not stop the rotor from spinning or restart the engine if it quit in a hard crash.
* After pressing Reset, put the two-position switch in Hold (idle) mode, and then press the 'j' key to start the engine (if it quit in the crash). Then take it out of Hold (two-position switch) and into Normal Flight Mode (three-position switch). Add some collective, and wait a few seconds for the gyro to spoolup and then add collective to fly.

This should set things straight!
Scott