Interferon Alfa Plus Thalidomide in Treating Patients With Relapsed or Refractory Non-Hodgkin's Lymphoma

Inclusion Criteria: * Histologically confirmed relapsed or refractory low-grade follicular non-Hodgkin's lymphoma (NHL) * WHO grade 1 or 2 * Failure to achieve a complete or partial remission after prior treatment regimen * Relapse or disease progression within 30 days after prior treatment regimen * No histologic transformation to aggressive NHL or areas of diffuse NHL * At least 1 measurable lesion by CT scan, MRI, or chest x-ray * Tissue in the form of tissue blocks available * No brain metastasis or primary brain tumors * Performance status - ECOG 0-1 * More than 3 months * Absolute neutrophil count greater than 1,500/mm\^3 * Platelet count greater than 100,000/mm\^3 * Hemoglobin greater than 8.5 g/dL * Bilirubin no greater than 1.5 mg/dL * SGOT/SGPT no greater than 2.5 times upper limit of normal * PT (or INR)/PTT normal or not clinically significant * No preexisting liver disease * Creatinine no greater than 1.5 mg/dL * Creatinine clearance greater than 60 mL/min * No uncompensated coronary artery disease * No myocardial infarction or severe/unstable angina within the past 6 months * No active infection * No prior gastrointestinal disorder that would interfere with thalidomide absorption * No preexisting autoimmune disease * No medical, psychological, or social problem that would preclude study participation * No uncontrolled or untreated depression * No emotional disorder or substance abuse * No prior seizures or potential risk factors for development of seizures * HIV negative * Not pregnant or nursing * Negative pregnancy test at baseline, weekly for 4 weeks, and then every 2-4 weeks thereafter while on study * Fertile female patients must use 1 highly active method and 1 additional effective method of contraception for 4 weeks before, during, and for 4 weeks after study * Fertile male patients must use effective barrier contraception during and for 4 weeks after study participation * No more than 1 prior course of unconjugated monoclonal antibody therapy * No prior conjugated monoclonal antibody (radiolabeled or immunotoxin) therapy * No prior interferon alfa * No concurrent hematopoietic growth factors or other cytokines * No concurrent monoclonal antibodies * No more than 2 prior chemotherapy regimens (single agent or combination) * At least 28 days since prior chemotherapy * No concurrent chemotherapy * At least 28 days since prior corticosteroid therapy * Prior or concurrent megestrol allowed * No concurrent corticosteroids * No concurrent hormonal therapy * Prior palliative radiotherapy to nontarget lesions allowed * No prior radiotherapy to all sites of measurable disease * No prior extensive radiotherapy to more than 20% of bone marrow * No concurrent palliative radiotherapy * At least 14 days since prior major surgery * No prior major upper gastrointestinal surgery * No other concurrent cytotoxic agents * No other concurrent investigational therapy * No other concurrent anticancer therapy