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I'm sorry if it sounds like an obvious answer, but if a Flyer has the option to hover... does it still have to start in reserves if it chooses to hover? (despite not zooming)

I generally thought they do stay in reserves, but when they come off reserve they get to choose their movement system (zoom or hover)

Reading the rules over and over again, my group were split over this and I can't seem to find an answer.

The other thing I've been meaning to ask, if a Flyer has the option to outflank (infiltrate/scouts etc), can it choose to use this with incoming reserves? (like going off the board)

Flyers must start in reserves. pg 80 Aerial Support.

Even in Hover Mode, it's still a flyer so must start in reserve.

As for using Outflank in Ongoing Reserve, this is covered in the Outflank rule (page 40)

A flyer is always a flyer. If it goes into hover mode, it is also a fast skimmer, but it's still a flyer fast skimmer. So, all the rules that are for flyers in general, rather than specifically for zooming, still apply to hovering flyers. That means they have to start in reserve (and, IIRC, can choose to Skyfire).