PEG-Interferon Alfa-2b and Thalidomide in Treating Patients With Recurrent or Metastatic Melanoma

DISEASE CHARACTERISTICS: Histologically confirmed malignant melanoma, including any of the following: Cutaneous melanoma Ocular melanoma Mucosal melanoma Unidentified primary tumor Recurrent or metastatic disease Bidimensionally measurable or evaluable disease Brain metastases allowed provided disease is stable for ≥ 6 weeks after prior radiotherapy PATIENT CHARACTERISTICS: Age 18 and over Performance status SWOG 0-2 Life expectancy At least 12 weeks Hematopoietic Absolute granulocyte count ≥ 1,500/mm^3 Platelet count ≥ 100,000/mm^3 Hepatic Bilirubin ≤ 2 times upper limit of normal (ULN) SGOT ≤ 2 times ULN Renal Creatinine ≤ 2 mg/dL Cardiovascular None of the following conditions within the past 3 months: Congestive heart failure Second- or third-degree heart block Myocardial infarction Other Not pregnant or nursing Negative pregnancy test Fertile patients must use effective double-method contraception (1 highly effective and 1 additional method) for ≥ 4 weeks before, during, and for ≥ 4 weeks after completion of study treatment No other malignancy within the past 2 years except adequately treated skin cancer or carcinoma in situ of the cervix No concurrent blood, sperm, or ova donation PRIOR CONCURRENT THERAPY: Biologic therapy Prior biologic therapy (e.g., interferon) allowed Chemotherapy Not specified Endocrine therapy Not specified Radiotherapy See Disease Characteristics At least 28 days since prior radiotherapy Surgery At least 28 days since prior surgery Other No more than 2 prior systemic treatment regimens for metastatic malignant melanoma