Imatinib Mesylate and 17-N-Allylamino-17-Demethoxygeldanamycin in Treating Patients With Chronic Myelogenous Leukemia

DISEASE CHARACTERISTICS: * Diagnosis of chronic myelogenous leukemia, including any of the following phases: * Blastic phase * Greater than 30% blasts in the peripheral blood or bone marrow * Previously untreated disease OR refractory to or relapsed after most recent therapy * Accelerated phase, defined by 1 of the following: * At least 15, but less than 30%, blasts in the peripheral blood or bone marrow * At least 30% blasts and promyelocytes in the peripheral blood or bone marrow * Greater than 20% peripheral blood basophilia * Chronic phase * No major cytogenetic response (less than 65% Philadelphia chromosome negative) after 12 months of prior imatinib mesylate therapy * Philadelphia chromosome positive by routine cytogenetics PATIENT CHARACTERISTICS: Age * 18 and over Performance status * ECOG 0-2 Life expectancy * At least 3 months Hematopoietic * Not specified Hepatic * Bilirubin no greater than 1.5 mg/dL * ALT and AST no greater than 2.5 times upper limit of normal Renal * Creatinine less than 1.5 mg/dL Cardiovascular * No symptomatic congestive heart failure * No unstable angina pectoris * No cardiac arrhythmia Other * Not pregnant or nursing * Negative pregnancy test * Fertile patients must use effective contraception * No known allergy to eggs * Able to swallow pills * No ongoing or active infection * No psychiatric illness or social situation that would preclude study compliance * No other concurrent uncontrolled medical illness PRIOR CONCURRENT THERAPY: Biologic therapy * No prior stem cell transplantation Chemotherapy * More than 4 weeks since prior chemotherapy (except hydroxyurea or anagrelide) (at least 6 weeks for nitrosoureas or mitomycin) Endocrine therapy * Not specified Radiotherapy * More than 4 weeks since prior radiotherapy Surgery * No prior liver, kidney, or lung transplantation * More than 14 days since prior major surgery (e.g., thoracotomy or intra-abdominal surgery) Other * Prior imatinib mesylate administered within the past 4 weeks is allowed * No concurrent tacrolimus or cyclosporine as immunosuppressive agents * No other concurrent investigational agents * No concurrent combination antiretroviral therapy for HIV-positive patients * No concurrent agents that alter CYP3A4 activity, including any of the following: * Grapefruit juice * Ketoconazole * Fluconazole * Itraconazole * Erythromycin * Clarithromycin * Cimetidine * Terfenadine * Astemizole * HIV protease inhibitors (e.g., indinavir and nelfinavir)