Melphalan With or Without Tumor Necrosis Factor in Treating Patients With Locally Advanced Melanoma of the Arm or Leg

Inclusion Criteria: * Histologically proven locally advanced melanoma of an extremity * One or more evaluable in-transit metastases * All disease within the perfusion field of the extremity (with no local resection options short of amputation) * Disease outside of perfusion field (with no local resection options short of amputation) if all the following are true: * High tumor burden (more than 10 lesions or any single lesion greater than 3 cm) * Presence of pain, edema, skin breakdown, or decreased mobility * Greater than 80% of known tumor is within extremity perfusion field * Life expectancy more than 6 months * No brain metastases * At least 1 bidimensionally measurable lesion * Patients who received prior prophylactic isolated limb perfusion (ILP) must have 1 of the following: * Disease-free interval for at least 6 months after prior ILP with melphalan * Disease-free interval for at least 3 months after prior ILP with an agent other than melphalan * Patients who received prior therapeutic ILP must have 1 of the following: * Partial response of at least 3 months duration after prior ILP with melphalan * Stable response or disease progression after ILP without melphalan (performed at least 3 months prior to study) * Performance status - ECOG 0-2 * Performance status - Zubrod 0-2 * See Disease Characteristics * Platelet count at least 100,000/mm\^3 * WBC greater than 2,500/mm\^3 * Hemoglobin greater than 9 g/dL * Bilirubin less than 1.25 times ULN * AST and ALT less than 2 times ULN * Alkaline phosphatase less than 2 times ULN * Coagulation studies normal or within 1 second of upper limit of normal (ULN) * Creatinine less than 1.5 mg/dL * Creatinine clearance greater than 50 mL/min * Calcium less than 12 mg/dL * No severe peripheral vascular disease (claudication or other ischemic peripheral vascular disease \[e.g., venous thrombosis or occlusive peripheral arterial disease\]) * No New York Heart Association class II-IV heart disease (congestive heart failure) * No uncontrolled or life-threatening cardiac arrhythmia * No myocardial infarction within the past year * No unstable angina * No symptomatic cerebral or carotid artery disease * No pulmonary embolism within the past year * Other prior malignancy allowed if completed curative therapy, disease-free for at least 5 years, and at low risk for recurrence * No active peptic ulcer disease within the past year * Not pregnant or nursing * Negative pregnancy test * Fertile patients must use effective contraception * No known melphalan hypersensitivity * No known hypersensitivity to any component of tumor necrosis factor alpha formulation * No contraindications to ionotropic agents (e.g., dopamine or neosynephrine) * No concurrent infections uncontrolled with antibiotics * HIV negative * At least 1 month since prior biologic therapy * See Disease Characteristics * At least 1 month since prior chemotherapy * At least 4 months since prior isolated limb perfusion * At least 1 month since prior radiotherapy * See Disease Characteristics * At least 12 months since prior coronary artery surgery or angioplasty