A Boeing 737-300, operated by Continental Airlines as flight 1933, had a failure of the No. 1 engine shortly after takeoff from West Palm Beach. The captain stated he was in the right seat and acting as a check airman. The second pilot, who was flying the aircraft from the left seat, was receiving initial operating experience as a captain. Both pilots stated that after takeoff on runway 9 left, as they were climbing through about 1,000 feet, there was the sound of a loud bang, they felt a extremely violent jolt, and felt severe shaking of a short duration. The No. 1 engine gauges went to zero. There was no indication of fire. The second pilot continued to fly the airplane and the captain ensured the No. 2 engine was increased to full power. They entered a left downwind leg for runway 9 left and returned to West Palm Beach International Airport, where they landed without further incident. Examination of the airplane showed there was damage to the left wing high lift devices, fuselage, vertical and horizontal stabilizers, rudder, and tail cone. The No. 1 engine left thrust reverser had separated. Debris from the No.1 engine was located over an eight block long by three block wide city block area. Examination of the No. 1 engine revealed that it had a 360 degree separation in plane with the high pressure turbine (HPT) rotor and that the HPT shaft and the HPT forward rotating air seal had exited the engine. The HPT rotating air seal was recovered in the debris field. PROBABLE CAUSE: “The fatigue fracture and separation of the high pressure turbine forward rotating air seal due to a manufacturing defect in a bolt hole that was not detected by the engine manufacturer due to inadequate and ineffective inspection techniques. Contributing to the accident was the engine manufacturers failure to provide adequate hole making requirements at the time the forward rotating air seal was manufactured and the engine manufacturers failure at the time of last inspection to require eddy current inspections for the high pressure turbine forward rotating air seal bolt holes.”