I just had the same thing happen to me on takeoff out of Pope AFB on RWY 23.  It was a smooth takeoff, no bumps and nosegear failed to retract.  It caught my attention when the the nosegear indicator showed "in transit".  I went to external view and there it was, just blowing in the breeze.  So.. I made the most of it, I circled for about 20 min dumping fuel go get down to min gross weight, then got rid of the cargo since I cant shift it aft and hoped that it was down and locked.  I made a 100% flap approach and held the nose off the ground as long as i could and (of couse) the nose was not locked and it collapsed.  It might be a flaw in the system, but these things happen in real life... ALOT... and I think it made the sim more realistic.   Now, if we could just press a button to get the crash and rescue people to respond  ;D