GM-CSF and Thalidomide in Treating Patients Undergoing Surgery for High-Risk Prostate Cancer

DISEASE CHARACTERISTICS: * Histologically confirmed adenocarcinoma of the prostate meeting any of the following criteria for high-risk disease: * Clinical stage II or III (T2b, T2c, or T3 with any grade or prostate-specific antigen \[PSA\]) * Gleason score 7 (4+3 only) or ≥ 8 (any stage or PSA) * Serum PSA ≥ 10 ng/dL (any grade or stage) * Any stage, PSA, or Gleason score with ≥ 35% chance of biochemical failure at 5 years based on Kattan's nomogram * No clinical evidence of CNS metastases * No metastatic disease as demonstrated by radiological exam (CT scan, MRI, bone scan, x-ray) within 8 weeks of study entry * Appropriate medical candidate for radical prostatectomy PATIENT CHARACTERISTICS: * ECOG performance status 0-1 * Creatinine ≤ 2.0 mg/dL * Granulocyte count ≥ 1,800/mm³ * Platelet count ≥ 100,000/mm³ * AST \< 3 times upper limit of normal * Bilirubin ≤ 1.5 mg/dL * Fertile patients must use effective contraception during and for 4 weeks after completion of study treatment * No active unresolved infection * No pre-existing peripheral neuropathy \> grade 1 * No known HIV positivity * No other malignancy within the past 5 years except curatively treated basal cell or squamous cell carcinoma of the skin or controlled Ta transitional cell carcinoma of the bladder * No known contraindication to sargramostim (GM-CSF) or thalidomide PRIOR CONCURRENT THERAPY: * No prior radiotherapy to the prostate or pelvis * No prior chemotherapy or hormonal therapy for prostate cancer * No parenteral antibiotics within the past 7 days