Vaccine Therapy, Chemotherapy, and Radiation Therapy in Treating Patients With Stage III Non-Small Cell Lung Cancer That Cannot Be Removed With Surgery

DISEASE CHARACTERISTICS: Histologically confirmed non-small cell lung cancer Stage III (locally advanced) disease Unresectable disease Carcinoembryonic antigen (CEA)-positive (staining ≥ 20% of cells) tumor by immunohistochemistry HLA-A2-positive No distant metastases PATIENT CHARACTERISTICS: Age 18 and over Performance status ECOG 0-1 Life expectancy At least 6 months Hematopoietic Granulocyte count ≥ 1,500/mm^3 Platelet count ≥ 100,000/mm^3 Absolute lymphocyte count ≥ 600/mm^3 Hemoglobin ≥ 10 g/dL Hepatic Bilirubin < 1.5 mg/dL AST ≤ 2 times upper limit of normal Hepatitis B and C negative Renal Creatinine normal OR Creatinine clearance > 60 mL/min Cardiovascular No unstable or newly diagnosed angina pectoris No myocardial infarction within the past 6 months No New York Heart Association class II-IV congestive heart failure Immunologic HIV negative No altered immune function No active or history of eczema No atopic dermatitis No autoimmune disease, including any of the following: Autoimmune neutropenia, thrombocytopenia, or hemolytic anemia Systemic lupus erythematosus Sjögren's syndrome Scleroderma Myasthenia gravis Goodpasture's syndrome Addison's disease Hashimoto's thyroiditis Active Graves' disease Multiple sclerosis No known history of allergy or serious reaction to prior vaccination with vaccina No known allergy to eggs No active or history of extensive psoriasis, severe acneiform rash, impetigo, varicella zoster, burns, or other traumatic or pruritic skin condition Other Not pregnant or nursing Negative pregnancy test Fertile patients must use effective contraception during and for 4 months after study participation No history of seizures or encephalitis Able to avoid close household contact with the following individuals for at least 3 weeks after vaccinia vaccination: Children under 3 years of age Pregnant or nursing women Individuals with a history of or active eczema or other eczematoid skin disorders Individuals with other acute, chronic, or exfoliative skin conditions (e.g., atopic dermatitis, impetigo, burns, varicella zoster, severe acne, or other open rashes or wounds) Immunodeficient or immunosuppressed individuals, including HIV-positive persons, by disease or therapy No other active malignancy within the past 2 years No other concurrent serious illness PRIOR CONCURRENT THERAPY: Biologic therapy At least 3 years since prior immunotherapy with related vaccinia and fowlpox vaccines At least 3 years since prior antigen-specific peptides No other concurrent immunotherapy Chemotherapy No prior paclitaxel or carboplatin for lung cancer At least 3 years since prior chemotherapy No other concurrent chemotherapy Endocrine therapy No concurrent steroids, except for any of the following: Topical steroids Inhaled steroids for mild or moderate asthma Dexamethasone as premedication for paclitaxel OR for short-term doses (48-72 hours in duration) to control refractory nausea that is not responding to other antiemetics Systemic corticosteroids for ≥ grade 3 radiation pneumonitis No steroid eye-drops for at least 3 weeks after vaccinia vaccination No concurrent hormonal therapy No concurrent systemic glucocorticoids Radiotherapy No prior radiotherapy to the lung fields No prior thoracic radiotherapy for lung cancer No other concurrent radiotherapy Surgery Surgical scars must be healed No prior splenectomy No concurrent major surgical procedure Other Recovered from all prior therapy No other concurrent anticancer agent or therapy