Tanespimycin in Treating Patients With Inoperable Locoregionally Advanced or Metastatic Thyroid Cancer

Inclusion Criteria: * Diagnosis of thyroid carcinoma of 1 of the following types: * Medullary * Differentiated * Iodine I 131-resistant disease, defined as failure to incorporate and/or progression of measurable disease after treatment with iodine I 131 * Inoperable locoregionally advanced or metastatic disease * Measurable disease, defined as ≥ 1 lesion ≥ 2.0 cm by conventional techniques OR ≥ 1.0 cm by spiral CT scan * No active CNS metastases * Performance status - ECOG 0-2 * Absolute neutrophil count ≥ 1,500/mm\^3 * Platelet count ≥ 100,000/mm\^3 * Hemoglobin ≥ 9.0 g/dL * Bilirubin ≤ normal * Alkaline phosphatase ≤ 2.5 times upper limit of normal (ULN) * AST ≤ 1.5 times ULN * Creatinine ≤ 1.5 times ULN * QTc \< 450 msec for male patients (470 msec for female patients) * LVEF \> 40% by MUGA * DLCO ≥ 80% * No cardiac symptoms ≥ grade 2 * No active ischemic heart disease within the past year * No congenital long QT syndrome * No left bundle branch block * No history of serious ventricular arrhythmia (i.e., ventricular tachycardia or ventricular fibrillation ≥ 3 beats in a row) * No myocardial infarction within the past year * No New York Heart Association class III or IV congestive heart failure * No poorly controlled angina * No history of angina (of any sort) within the past 6 months * No history of uncontrolled dysrhythmias or requiring antiarrhythmic drugs * No history of cardiac toxicity after treatment with anthracyclines (e.g., doxorubicin hydrochloride, daunorubicin hydrochloride, mitoxantrone hydrochloride, bleomycin, or carmustine) * No other significant cardiac disease * No uncontrolled infection * No history of serious allergic reaction to eggs * No pulmonary symptoms ≥ grade 2 * No symptomatic pulmonary disease requiring medication including the following: * Dyspnea on or off exertion * Paroxysmal nocturnal dyspnea * Oxygen requirement * Significant pulmonary disease (e.g., chronic obstructive/restrictive pulmonary disease) * No home oxygen need meeting the Medicare criteria * No history of pulmonary toxicity after treatment with anthracyclines (e.g., doxorubicin hydrochloride, daunorubicin hydrochloride, mitoxantrone hydrochloride, bleomycin, or carmustine) * Not pregnant or nursing * Negative pregnancy test * Fertile patients must use effective contraception * No other malignancy within the past 5 years except adequately treated basal cell or squamous cell skin cancer or noninvasive carcinoma * No active seizure disorder * More than 4 weeks since prior and no concurrent immunotherapy * More than 4 weeks since prior biologic therapy * No concurrent routine or prophylactic colony-stimulating factors (e.g., filgrastim \[G-CSF\] or sargramostim \[GM-CSF\]) * More than 4 weeks since prior chemotherapy (6 weeks for mitomycin or nitrosoureas) and recovered * No other concurrent chemotherapy * See Disease Characteristics * More than 4 weeks since prior and no concurrent radiotherapy * More than 4 weeks since prior radiopharmaceuticals * No prior radiotherapy to \> 25% of bone marrow * No prior radiotherapy that potentially included the heart in the field (i.e., mantle) or chest * More than 4 weeks since prior therapeutic surgery for the tumor * More than 3 months since prior sublingual nitroglycerin * No other concurrent investigational ancillary therapy * Concurrent CYP3A4 inhibitors allowed * No concurrent medications that prolong or may prolong QTc interval