Apropos to this discussion of hybrid rockets and especially of N2O as an oxidizer, the recent SpaceShipTwo disaster got me reading up on the hazards of this stuff.
It's not quite as benign as I had thought. While remarkably stable at STP, it can be decomposed with sufficient pressure and temperature -- and its positive enthalpy of formation means it will happily continue the process once started.
The necessary pressure can be supplied by the N2O itself (because of its high vapor pressure at room temperature) and the ignition temperature can be supplied by any number of unintentional mechanisms that are often all too obvious only after an accident has occurred: adiabatic compression of gas in a pipeline, or the implosion of bubbles in a mixture of gas and liquid.
I know it's much too early to know for sure, but I already strongly suspect that autocatalytic decomposition of N2O had a lot to do with it. Scaled Composites had one prior fatal accident with the stuff in 2007 during a ground test that simply filled a tank and then expelled it through an injector, with no intended ignition. Three people were killed and more were injured.