Took the mini-max for a maiden flight last sunday and the whole episode lasted for about 10 min. Hand launched it with full power and up elevator. It shot up stalled and dived into the ground. Damages included bent prop, broken wheel, and a servo .

The plane was built per instructions, the control gears were gws naro servos, jeti 5 receiver and 8.4v nicad.

Can some one please tell me whether its normal for the internal gears in the servo to break in a crash since it's actually sitting on top of the fuselage halfway between the tail and the te ?. Also, how much do I have to tighten the nut which holds the prop on to the motor shaft as it continually worked itself loose. However the prop will lock if I tighten it too much.

That's a big NO NO. Never give full power and up elevator on a hand launch. (well most models) Apply 1/2 3/4 thottle and a nice straight toss!
This is normal depending on the force of the crash and the posistion the servo was in upon impact.