I just built a quadcopter using the APM board without a GPS module attached. The maiden flight was successful and the vehicle flys ok. I programmed a switch on my TX for altitude hold but, upon activation, the copter went out of control so I quickly switched it off. Not sure how to troubleshoot this further.
I have a GPS module on order and expect it in any day now. Besides flying waypoints, is there any other reason to use a GPS? The vehicle can still do altitude hold and loiter modes without GPS, right?