Did some flying over the long weekend here in Oz, sans camera assy as it's off for warranty repair. Did 6 flights and no hint of a problem. Flying at the beach in all directions to around 300-400m mostly over water, all batteries fully charged, home point and compass set. As it was strictly LOS, I did a test of RTH by switching the Tx off. After a brief period it initiated RTH so all ok just in case ! I regained control with Tx on and S1 to middle position. Enough for that session. Stopped when battery LEDs went to 2 just to be safe ! Came back later with fresh battery and off I went again. Forgot to put S1 to top so it flipped on takeoff. S1 up !! Off it went. No problems, but I lost visual 8 minutes into flight around 350m away due to blending into sky clouds, but only 50m up. hmmm.. can't see it or hear it. Time for RTH !. Tx off and waited...and waited...and waited. 3 minutes later nothing ! I don't know if it went to a perceived home or just went for a swim, but it's gone for good and being sea water there won't be anything to salvage. Scored the beach at low tide for 3 hours (B-I-G beach) but nothing. Ah well..have to look at insurance for the next one ! If the camera warranty goes through that'll offset the new V2 anyway.