I remember torrenting this plane. I highly suggest paying for this because the crack installer corrupts the aircraft (Glitching out textures, or not even letting the plane load at all)
Interesting that Engine 2 quit on takeoff. This problem also happened to me, which resulted in being unable to takeoff on the runway. The grass & trees seemed to improve the paint job though (joke)!
Check your aircraft weight. sometimes it gets over MTOW(Maximum takeoff weight) and yes, the flaps should be moved to a takeoff setting according to your weight ( usually 10 to 15 degrees should be enough if you are within the MTOW limits which is about 70-80% of the aircraft capacity. And also set the trim to nose up so it would help to lift the aircraft a bit more during takeoff. )