That looks like a clear cut case of detonation. That's why I'm either going all or nothing with my nitrous buildup....fuel, timing, nitrous, it all has to be balanced to get big gains without going boom. Looks to me like your Venom system dumped a bunch of nitrous into the cylinders. You sure your solenoid box is working properly? Weigh your nitrous tank...is it lighter than it should be? What mode were you in? It deeply concerns me that you were only running the kit at 5% and had this kind of failure as soon as you got out of your driveway. If it were me, I'd:
1. Check the wiring to all the fuel injector harnesses
2. go with a spark plug that's at least 2 heat ranges cooler and set the gap really small (like 0.035)
3. Get some way to have your timing retarded by 2-4*, maybe more, up towards the top end.
4. DEFINITELY change your fuel filter...it could be clogged causing a rapid leanout when fuel demand rises. Try and get a good aftermarket one if possible.
I hope you didn't burn a valve or worse. Please let us know what you find out buddy....if that system does nothing but eat spark plugs and burn pistons, I'm just going to buy a zex kit, wheels, tires and suspension instead of the Venom kit and fughetaboudit.