Hello Constantine,
You have to use a very recent version of ardupilot (i.e. master from within the past few days)
Enable optical flow and make sure it can be flown in Loiter mode
You need to set: AHRS_EKF_TYPE = 3, EK2_ENABLE = 0, EK3_ENABLE=1 , GPS_TYPE = 0
Within Mission Planner select ‘Set home here’ then the vehicle should appear on the map
Then you can take-off in loiter mode and set guided through Mission Planner (or using commands).
Please note , I cannot take-off guided yet with Optical Flow yet , we are working on it.
Please update with your results 
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