Tanespimycin in Treating Patients With Stage III-IV Melanoma

Inclusion Criteria: * Histologically or cytologically confirmed melanoma * Stage III or IV disease * No primary melanoma of the choroid or mucosa * Measurable disease * At least 1 unidimensionally measurable lesion \>= 20 mm by conventional techniques OR \>= 10 mm by spiral CT scan * Tumor amenable to biopsy (for the first 10 patients in each stratum only) * Patients must have measurable disease in addition to the tumor(s) to be biopsied * No brain or epidural metastases * Completely resected solitary brain metastases allowed provided patient has been free of CNS metastases for \>= 6 months * Performance status - Karnofsky 60-100% * Performance status - ECOG 0-2 * More than 3 months * Absolute neutrophil count \>= 1,500/mm\^3 * Platelet count \>= 100,000/mm\^3 * WBC \>= 3,000/mm\^3 * AST and ALT =\< 2.5 times upper limit of normal * Creatinine normal * No symptomatic congestive heart failure * No unstable angina pectoris * No cardiac arrhythmia * No history of myocardial infarction * No history of prolonged QTc interval * No active ischemic heart disease within the past 12 months * No uncontrolled dysrhythmia or dysrhythmias requiring medication * No congenital prolonged QT syndrome * No left bundle branch block * Not pregnant or nursing * Negative pregnancy test * Fertile patients must use effective contraception * No prior allergic reaction attributed to compounds of similar chemical or biological composition to 17-N-allylamino-17-demethoxygeldanamycin (17-AAG) * No prior serious allergic reaction to eggs * No other uncontrolled illness * No active or ongoing infection requiring systemic antimicrobial treatment * No psychiatric illness or social situation that would preclude study compliance * No more than 1 prior chemotherapy regimen for metastatic melanoma * Prior vaccines, cytokines, or interferon alfa is not considered prior therapy unless administered with a chemotherapy drug * More than 4 weeks since prior chemotherapy (6 weeks for nitrosoureas or mitomycin) and recovered * Prior radiotherapy dose =\< 3,000 cGy to fields including substantial marrow * More than 4 weeks since prior radiotherapy and recovered * No prior radiotherapy field that included the heart (e.g., mantle) * No concurrent combination antiretroviral therapy for HIV-positive patients * No concurrent medications that may prolong the QTc interval * No other concurrent anticancer therapy * No other concurrent investigational agents * No concurrent treatment with any of the following medications or herbal remedies: * Inhibitors of CYP3A4: * Fluconazole * Itraconazole * Ketoconazole * Macrolide antibiotics (azithromycin, clarithromycin, erythromycin, or troleandomycin) * Midazolam * Nifedipine * Verapamil * Diltiazem * Terfenadine * Cyclosporine * Cisapride * Inducers of CYP3A4: * Carbamazepine * Phenobarbital * Phenytoin * Rifampin * Herbal extracts and tinctures with CYP3A4 inhibitory activity: * Hydrastis canadensis (goldenseal) * Hypericum perforatum (St. John's wort) * Uncaria tomentosa (cat's claw) * Echinacea angustifolia roots * Trifolium pratense (wild cherry) * Matricaria chamomilla (chamomile) * Glycyrrhiza glabra (licorice) * Dillapiol * Hypericin * Naringin * No other concurrent herbal extracts