Yes, I'm too rusty on the basics, I think I realize the problem now. One manifestation of what I was thinking was this
1. measure O1 and get 0
2. now we know the state is a linear combination of S2,S3,S4
3. measure O2 and get 0
4. now we know the state is a linear combination of S1,S3,S4
5. measure O3 and get 0
6. now we know the state is a linear combination of S1,S2,S4
7. measure O4 and get 0
8. now we know the state is a linear combination of S1,S2,S3
Looks like that's just not precise enough in 4,6 -- the state after measuring a degenerate eigenvalue is not just any linear combination of the eigenvectors, but the projection of the previous state onto this eigenspace (I forgot the latter). So even if 1,3, and 5 occurred this projection rule would then force the state to be S4 so that 7 could NOT happen.
Similarly, if v1=1 then immediate subsequent measurements of O2,O3,O4 must all give 0 by this projection rule (I was previously thinking only the NEXT measurement had to give 0, then the state would be any linear combination of the other three states and hence anything goes in the 3rd measurement O3).
Thanks!