Yes, in the rest frame we can write a 4-velocity as \left( 0, 0, 0, c \right) by choosing the inertial frame appropriately.
My understanding is that the magnitude of \left( 0, 0, \gamma v, \gamma c \right) would be (\gamma^2 c^2-\gamma v^2)^{1/2}. I also don't know why we can assume that the...