This was the fourth attempt to launch a Falcon 1 two-stage rocket into space. "Fourth time's a charm," said Elon Musk, the multimillionaire co-founder of PayPal, who started up SpaceX after making his fortune there.

The rocket carried a 364-pound dummy payload. Last month, a real payload was lost in the company's third attempt to reach orbit: three government satellites and human ashes consisting of the remains of astronaut Gordon Cooper and "Star Trek" actor James Doohan (Scotty).

Falcon 1 is a 70-foot-long rocket powered by liquid oxygen and kerosene, but the company is also developing a larger launch vehicle, the Falcon 9, for NASA. The Falcon 9 is designed to be capable of flying to the International Space Station (ISS), for use when the space shuttle fleet retires in 2010.