The magnetic susceptibility of a new one-dimensional S = 1 system, the vana
dium oxide LiVGe2O6, has been measured. Contrary to previous S = 1 chains,
it exhibits an abrupt drop at 22 K typical of a spin-Peierls transition, an
d it is consistent with a gapless spectrum above this temperature. We propo
se that this behavior is due to the presence of a significant biquadratic e
xchange interaction, a suggestion supported by quantum chemistry calculatio
ns that take into account the quasidegeneracy of the t(2g) levels.