quadcopter arduino drone first build

I am building a custom quadcopter based off an Arduino flight controller. I attempted to fly it today. It went about 8 feet in the air, hovered steadily for almost a second, then began to oscillate slowly, then rapidly, then finally flipped over in the air and crashed. I attached this video ()...

I want to make a drone (with an onboard camera) from scratch with a friend, and I have some questions of the making of the drone. We are planning to purchase the parts off hobbyking and discussed the parts for a quadcopter; 4X ESCs, 4X motors, 4x Rotors, Frame. We plan to use an ardiuno chip...