S0709: Erlotinib With or Without Carboplatin and Paclitaxel in Stage IIIB or Stage IV Non-Small Cell Lung Cancer

DISEASE CHARACTERISTICS: * Histologically or cytologically confirmed non-small cell lung cancer (NSCLC), including any of the following subtypes: * Adenocarcinoma * Large cell carcinoma * Squamous cell carcinoma * Unspecified * Newly diagnosed primary disease OR recurrent disease after prior surgery and/or radiotherapy, meeting 1 of the following staging criteria: * Selected stage IIIB disease (T4 \[secondary to malignant pleural effusion only\], any N, M0) * Stage IV disease (any T, any N, M1 \[distant metastases present\]) * Measurable or nonmeasurable disease by CT scan, MRI, x-ray, physical exam, or nuclear scan * The CT scan from a combined PET/CT scan may only be used to document nonmeasurable disease * Pleural effusions, ascites, and laboratory parameters are not acceptable as the only evidence of disease * Shows evidence of EGFR tyrosine kinase inhibitor therapy benefit (i.e., "proteomics positive") prior to study registration * No untreated brain metastases * Patients with treated brain metastases are allowed provided metastases have remained controlled for at least two weeks following treatment, AND patient has no residual neurological dysfunction off corticosteroids * Patients with neurologic abnormalities on physical examination or symptoms must have a negative pretreatment CT or MRI scan of the brain 28 days prior to registration PATIENT CHARACTERISTICS: * Zubrod performance status 2 * ANC ≥ 1,500/mm³ * Platelet count ≥ 1,000/mm³ * Serum bilirubin normal * SGOT or SGPT normal * Serum creatinine ≤ 2 times upper limit of normal OR creatinine clearance ≥ 50 mL/min * Willing to provide prior smoking history as requested on the prestudy form * No gastrointestinal (GI) tract disease resulting in an inability to take enteral medication * No malabsorption syndrome or requirement for IV alimentation * No uncontrolled inflammatory GI disease (e.g., Crohn's disease or ulcerative colitis) * No significant history of cardiac disease, including any of the following: * Uncontrolled high blood pressure * Unstable angina * Congestive heart failure * Myocardial infarction within the past 6 months * Cardiac ventricular arrhythmia requiring medication * No other prior malignancy except adequately treated basal cell or squamous cell skin cancer, in situ cervical cancer, adequately treated stage I or II cancer from which the patient is currently in complete remission, or any other cancer from which the patient has been disease-free for 5 years * Not pregnant or nursing * Fertile patients must use effective contraception PRIOR CONCURRENT THERAPY: * See Disease Characteristics * At least 3 weeks since prior radiotherapy or surgery (thoracic or other major surgery) and recovered * At least 1 year since prior adjuvant chemotherapy * No prior systemic hormonal therapy, chemotherapy, or biological therapy for advanced NSCLC * No prior EGFR inhibitors * No prior surgical procedures affecting absorption * No concurrent major surgery