Vaccine Therapy Plus Sargramostim and Interleukin-2 Compared With Nilutamide Alone in Treating Patients With Prostate Cancer

DISEASE CHARACTERISTICS: * Histologically confirmed hormone-refractory adenocarcinoma of the prostate * Rising PSA after orchiectomy and/or while receiving at least 1 regimen of luteinizing hormone-releasing hormone (LHRH) * PSA must have risen at least 0.5 ng/mL from baseline on 2 successive measurements during and/or after hormonal therapy * PSA greater than 1.0 ng/mL * If on antiandrogen therapy, must undergo antiandrogen withdrawal for at least 6 weeks and still have evidence of rising PSA * After prior bicalutamide, must undergo withdrawal for at least 6 weeks and still have evidence of rising PSA * Testosterone no greater than 50 ng/mL if no prior orchiectomy * No metastatic disease by bone scan and CT scan or MRI of the abdomen and pelvis and by CT scan or x-ray of the chest * No active or prior CNS metastases PATIENT CHARACTERISTICS: Age: * 18 and over Performance status: * Zubrod 0-2 OR * ECOG 0-2 Life expectancy: * Not specified Hematopoietic: * Absolute lymphocyte count at least 600/mm\^3 * Platelet count at least 100,000/mm\^3 * Hemoglobin at least 8.0 g/dL Hepatic: * Bilirubin no greater than 1.6 mg/dL * AST and ALT no greater than 4 times normal Renal: * Creatinine no greater than 1.5 mg/dL OR * Creatinine clearance greater than 60 mL/min * Urinalysis normal OR * Proteinuria no greater than 1 g/24-hour urine collection * No hematuria or abnormal sediment unless underlying cause is nonrenal Immunologic: * HIV negative * No altered immune function * No autoimmune disease, including the following: * Autoimmune neutropenia, thrombocytopenia, or hemolytic anemia * Systemic lupus erythematosus, Sjogren's syndrome, or scleroderma * Myasthenia gravis * Goodpasture syndrome * Addison's disease, Hashimoto's thyroiditis, or active Graves' disease * No known allergy or untoward reaction to prior vaccination with vaccinia virus * No known allergy to eggs * No active or prior eczema or other eczematoid skin disorders * No other acute, chronic, or exfoliative skin conditions (e.g., atopic dermatitis, impetigo, varicella zoster, burns, severe acne, or other open rashes or wounds) Other: * No other serious concurrent illness * No active infections within the past 3 days * No history of seizures, encephalitis, or multiple sclerosis * No close or household contact for at least 2 weeks after each vaccinia virus inoculation with the following high-risk individuals: * Children under 5 years of age * Pregnant or nursing women * Individuals with active or prior eczema or other eczematoid skin disorders, atopic dermatitis, impetigo, varicella zoster, burns, severe acne, or other open rashes or wounds * Immunosuppressed or immunodeficient (by disease or therapy) individuals, including those with HIV infection * No other malignancy within the past 3 years except squamous cell or basal cell skin cancer or other curatively treated malignancy PRIOR CONCURRENT THERAPY: Biologic therapy: * Must have prior vaccinia for smallpox immunization * No other concurrent biologic therapy Chemotherapy: * No prior chemotherapy for prostate cancer * No concurrent chemotherapy Endocrine therapy: * See Disease Characteristics * At least 4 weeks since prior hormonal therapy (6 weeks for bicalutamide) and recovered * If disease progression on LHRH antagonist, must continue to receive that LHRH agent or undergo surgical castration * No concurrent steroids unless topical or inhaled * No other concurrent hormonal therapy Radiotherapy: * At least 4 weeks since prior radiotherapy and recovered * No prior radiotherapy to more than 50% of nodal groups * No concurrent radiotherapy Surgery: * See Disease Characteristics * See Endocrine therapy * At least 4 weeks since prior surgery and recovered * No prior splenectomy Other: * No concurrent homeopathic therapy with PC-SPES or genistein