Thalidomide in Treating Patients With Myelodysplastic Syndrome

Inclusion Criteria: * Pre-transfusion hemoglobin =\< 10 g/dL * Pre-transfusion platelet count =\< 50,000/μL * Absolute neutrophil count \< 1000/μL * Total bilirubin ≤ 1.5 x UNL * Alkaline phosphatase ≤ 3 x UNL * AST ≤ 3 x UNL * Creatinine ≤ 1.5 x UNL * A diagnosis of MDS as demonstrated in the bone marrow; any subtypes are eligible including: * Refractory anemia (cytopenia) * Refractory anemia with ringed sideroblasts * Chronic myelomonocytic leukemia * Refractory anemia with excess blasts * Refractory anemia with excess blasts in transformation * Unclassified MDS * Patients with refractory anemia with excess blasts in transformation who are not candidates for (or who decline) induction chemotherapy are eligible; those patients who were candidates for (and accepted) induction chemotherapy should have failed at least 1 chemotherapy regimen prior to entry * Patients who are candidates for marrow transplantation should have this option discussed prior to study entry Exclusion Criteria: * Any of the following as this regimen may be harmful to a developing fetus or nursing child: * Pregnant women * Nursing women * Women of childbearing potential or their sexual partners who are unwilling to employ 2 adequate methods of contraception (condoms, diaphragm, birth control pills, injections, intrauterine device \[IUD\], surgical sterilization, subcutaneous implants, or abstinence, etc.) * Peripheral neuropathy (by history or clinical exam) * Concomitant therapy ≤ 30 days for myelodysplastic syndrome with any specific agent including chemotherapy, corticosteroids and/or growth factors (i.e. erythropoietin, G-CSF, GM-CSF, thrombopoietic agent); patients on chronic low-dose corticosteriods (\< 20 mg/d) for reasons other than MDS are allowed * Uncontrolled infections