Tanespimycin in Treating Young Patients With Recurrent or Refractory Leukemia or Solid Tumors

Inclusion Criteria: * Histologically confirmed diagnosis of 1 of the following malignancies: * Leukemia * Lymphoid, myeloid, or mixed lineage * Relapsed (in second or greater relapse) or refractory disease, confirmed by 1 of the following: * Bone marrow relapse, defined as either M3 bone marrow (\> 25% blasts in the bone marrow aspirate) OR M2 bone marrow (5-25% blasts in the bone marrow aspirate) at any time after complete remission is attained * CNS relapse, defined as at least 5 WBC/mL by cytospin of any cerebrospinal fluid (CSF) specimen OR less than 5 WBC/mL by cytospin of 2 consecutive CSF specimens obtained \>= 4 weeks apart and having definitive confirmation that blasts are derived from the original leukemic clone by molecular cytogenetics, multiparameter flow cytometry, or immunostaining of \>= 2 antigens * Patients with underlying chronic myeloid leukemia must have \> 25% blasts in the bone marrow aspirate * Patients with M3 bone marrow AND extramedullary sites of disease, other than leptomeningeal disease, are eligible * Solid tumor * One of the following tumor types: * Neuroblastoma * Ewing's sarcoma * Osteosarcoma * Desmoplastic small round cell tumor * Rhabdomyosarcoma * Progressed after prior standard therapy OR no effective standard therapy exists * Measurable or nonmeasurable disease * No known brain metastases * No active leptomeningeal leukemia, defined by the following criteria: * WBC \> 5/mm\^3 in cerebrospinal fluid (CSF) * Unequivocal confirmation of leukemic blasts in CSF by cell morphology * No symptomatic CNS disease (e.g., cranial nerve abnormalities) without cytologic abnormality in CSF * Performance status - Karnofsky 70-100% (for patients \> 10 years of age) * Performance status - Lansky 70-100% (for patients =\< 10 years of age) * More than 8 weeks * Absolute neutrophil count \>= 750/mm\^3 * Platelet count \>= 75,000/mm\^3 (transfusion independent) * Hemoglobin \>= 8.5 g/dL (transfusion allowed) * Bilirubin \< 1.5 mg/dL * ALT and AST =\< 2.5 times upper limit of normal (ULN) * INR =\< 1.5 times ULN * Albumin \> 2.0 g/dL * Creatinine =\< 1.5 times ULN for age * Creatinine clearance or radioisotope glomerular filtration rate \> 60 mL/min * Ejection fraction \>= 50% * Shortening fraction \>= 28% * QTc \< 450 msec for men (470 msec for women) * No congenital long QT syndrome * LVEF \> 40% by MUGA * No symptomatic congestive heart failure * No cardiac arrhythmia * No New York Heart Association class III or IV heart failure * No myocardial infarction within the past year * No uncontrolled dysrhythmias * No poorly controlled angina * More than 12 months since active ischemic heart disease * No history of serious ventricular arrhythmia (ventricular tachycardia or ventricular fibrillation \>= 3 beats in a row) * No left bundle branch block * No other significant cardiac disease * No pulmonary fibrosis by radiography * No ongoing or active bacterial or fungal infection * No other uncontrolled illness * No psychiatric illness or social situation that would preclude study compliance * No history of serious allergic reaction attributed to eggs or dimethyl sulfoxide * Not pregnant or nursing * Negative pregnancy test * Fertile patients must use effective contraception * Recovered from all immunotherapy * At least 6 months since prior allogeneic stem cell transplantation * At least 3 months since prior autologous stem cell transplantation * At least 2 weeks since prior biologic agents (e.g., monoclonal antibodies) * At least 1 week since prior filgrastim (G-CSF) or sargramostim (GM-CSF) * Recovered from all prior chemotherapy * At least 2 weeks since prior chemotherapy (for patients with leukemia only) * At least 4 weeks since prior chemotherapy (6 weeks for nitrosoureas or mitomycin) (for patients with solid tumors) * No prior oxaliplatin * No concurrent corticosteroids except for the treatment of adrenal crises in patients with suppressed hypothalamic-pituitary-adrenal axis response OR for treatment of allergic reactions to medications or blood products * Recovered from all prior radiotherapy * At least 6 months since prior radiotherapy to \>= 50% of the pelvis * At least 6 months since prior radiotherapy to substantial bone marrow, including total body irradiation * At least 4 weeks since prior local (small port) radiotherapy * No prior radiotherapy to the heart * At least 1 week since prior retinoids * No concurrent antiretroviral therapy for HIV-positive patients * No concurrent medication to control arrhythmias * No concurrent medications that prolong or may prolong QTc interval * No other concurrent investigational agents * No other concurrent anticancer therapy