Docetaxel and Thalidomide as Second-Line Therapy in Treating Patients With Stage III or Stage IV Non-Small Cell Lung Cancer

DISEASE CHARACTERISTICS: Histologically or cytologically confirmed non-small cell lung cancer, meeting 1 of the following stage criteria: Stage IIIB (with pleural effusion) Stage IIIA or IIIB Previously treated and not eligible for surgery or definitive thoracic radiotherapy Stage IV Measurable or evaluable disease Documented disease progression during or after standard first-line chemotherapy that may have included taxane No untreated brain metastases Patients with previously treated brain metastases are eligible provided they have recovered from prior treatment PATIENT CHARACTERISTICS: Age 18 and over Performance status ECOG 0-2 Life expectancy Not specified Hematopoietic Absolute neutrophil count > 1,500/mm^3 Hemoglobin ≥ 8.0 g/dL Platelet count > 100,000/mm^3 Hepatic Bilirubin normal SGOT and/or SGPT ≤ 2.5 times upper limit of normal (ULN) AND alkaline phosphatase normal OR SGOT and/or SGPT normal AND alkaline phosphatase ≤ 4 times ULN AND no ascites Albumin > 3.0 g/dL Renal Creatinine < 1.5 mg/dL Other Not pregnant or nursing Negative pregnancy test Fertile patients must use effective double-method contraception for 4 weeks before, during, and for ≥ 4 weeks after completion of study treatment No HIV positivity No peripheral neuropathy > grade 1 No other malignancy within the past 5 years except inactive nonmelanoma skin cancer or carcinoma in situ of the cervix or breast No active infections No history of severe hypersensitivity reaction to docetaxel or other drugs formulated with polysorbate 80 PRIOR CONCURRENT THERAPY: Biologic therapy Not specified Chemotherapy See Disease Characteristics No more than 1 prior systemic chemotherapy regimen for locally advanced or metastatic disease Prior neoadjuvant or adjuvant systemic chemotherapy allowed At least 4 weeks since prior chemotherapy and recovered Endocrine therapy Not specified Radiotherapy Recovered from prior radiotherapy Surgery Not specified Other No other concurrent investigational agents No other concurrent anticancer therapy