Fludarabine/Carboplatin/Topotecan w/Thalidomide for Relapsed/Refractory AML, CML and MDS

DISEASE CHARACTERISTICS: * Diagnosis of 1 of the following: * Acute myeloid leukemia meeting 1 of the following criteria: * Previously untreated and not a candidate for anthracycline-based chemotherapy * In first or second relapse or refractory * Secondary to chemotherapy or an antecedent hematologic disorder and treated with no more than 1 prior intensive induction regimen * Chronic myelogenous leukemia in blast crisis at diagnosis or after prior imatinib mesylate * Myelodysplastic syndromes (MDS) * Refractory anemia with excess blasts (RAEB) or RAEB in transformation * Must meet at least 1 of the following criteria: * Absolute neutrophil count no greater than 500/mm\^3 * Platelet or red cell transfusion-dependent after no more than 1 prior intensive induction chemotherapy * Acute promyelocytic leukemia * t(15, 17) * Failed prior treatment with tretinoin and arsenic * Relapsed disease at least 3 months after prior autologous stem cell transplantation * No active CNS leukemia PATIENT CHARACTERISTICS: Age * 18 and over Performance status * ECOG 0-3 Life expectancy * At least 8 weeks Hematopoietic * See Disease Characteristics Hepatic * Bilirubin no greater than 2.0 mg/dL * AST and ALT less than 3 times upper limit of normal Renal * Creatinine clearance at least 50 mL/min Cardiovascular * Ejection fraction at least 40% * No poorly controlled cardiac disease Pulmonary * No poorly controlled pulmonary disease Other * Not pregnant or nursing * Negative pregnancy test * Fertile female patients must use 1 highly effective and 1 additional method of contraception for 4 weeks before, during, and for at least 4 weeks after study * Male patients must use effective contraception during and for 4 weeks after study * Willing and able to comply with the System for Thalidomide Education and Prescribing Safety (STEPS) program * HIV negative * No poorly controlled infection * No other active malignancy * No severe peripheral neuropathy PRIOR CONCURRENT THERAPY: Biologic therapy * See Disease Characteristics * Prior thalidomide allowed for MDS * At least 5 days since prior hematopoietic growth factors * At least 2 weeks since prior biologic therapy * No prior allogeneic bone marrow transplantation Chemotherapy * See Disease Characteristics * At least 24 hours since prior hydroxyurea Endocrine therapy * At least 24 hours since prior corticosteroids Radiotherapy * Not specified Surgery * Not specified Other * At least 2 weeks since prior cytotoxic anticancer therapy * Prior amifostine allowed for MDS