Here I go again... with apologies to those who've heard it all before.
You do NOT need to be continuously monitored when you have a VBAC. It is done as a precautionary measure, but it is enough to be monitored every 15 minutes with a hand-held sonicaid thingummyjig. Obviously, had there been any doubts about whether my baby was in distress or not, I'd have agreed to continuous monitoring (as I would have done with any birth, VBAC or not), but she was absolutely fine throughout, and I was able to move around, kneel up, sit in the bath, whatever... The hospital may try to tell you that continuous monitoring is compulsory, but you really can insist on not having it. I am convinced that this made the difference between me having a successful VBAC or not. If you don't want to be continuously monitored, it may help if you can get your consultant (or whoever) to write this in your notes. Certainly the midwives on the labour ward when I went in would have liked to have hooked me up to a machine straight away, but the consultant's signature on my notes saying it was unnecessary made all the difference. (I know this won't work if your consultant isn't sympathetic though.)
I would not, under any circumstances, have had an epidural with my VBAC (it amazes me that hospitals offer this... though I'm sure that the experts know better than I do... mine is just a gut reaction). An epidural completely numbs your abdomen. The danger with a VBAC (albeit a very very rare one) is the danger of the scar rupturing. If the scar ruptures one of the signs is continuous pain, in between contractions. But if you have been numbed by an epidural you can't feel if the pain goes on between contractions or not. I found the pain reassuring (in a way... it was still painful, obviously) because as I felt it come and go with each contraction I was able to tell myself that my scar was holding out.
I would also not allow myself to be induced, since there is evidence of an increased risk of scar rupture with induction.
Be prepared to have a cannula put in (in case of emergencies) and they may want to take bloods to cross match and save (again in case of emergencies). I was prepared for all this, and used to it from my first very problematic pregnancy... but in the event my labour moved too quickly for them and by the time they came with their needles dd2 was almost ready to be born, so they didn't bother.
Good luck!