Skolem-Mahler-Lech type theorems and Picard-Vessiot theory

We show that three problems involving linear difference equations with rational function coefficients are essentially equivalent. The first problem is the generalization of the classical Skolem-Mahler-Lech theorem to rational function coefficients. The second problem is whether or not for a given linear difference equation there exists a Picard-Vessiot extension inside the ring of sequences. The third problem is a certain special case of the dynamical Mordell-Lang conjecture. This allows us to deduce solutions to the first two problems in a particular but fairly general special case.