Text (SC): Whenever a creature comes into play, destroy it. ;

: Destroy ~this~. You skip your next turn. Any player may play this ability.
As I read it, the paying of 0 mana is the activation cost, not the skipping if the turn, that's part of the effect. Problem with this loop is, that if it's allowed to be played out as you say, then there would be no end to it.
However, I think that once it's destroyed, no more turns will be skipped since the first part of the effect can no longer be carried out, so there would be no more turns to skip cause Lethal Vapors can't be destroyed anymore. At most, 1 turn would be skipped.
I'm not really sure on this, some rules guru will come walking in here sometime in the next 2 hours or so and clarify it totally.