DISEASE CHARACTERISTICS:

• Histologically confirmed relapsed or refractory low-grade follicular non-Hodgkin's lymphoma (NHL)

  • WHO grade 1 or 2
  • Failure to achieve a complete or partial remission after prior treatment regimen OR
  • Relapse or disease progression within 30 days after prior treatment regimen
• No histologic transformation to aggressive NHL or areas of diffuse NHL
• At least 1 measurable lesion by CT scan, MRI, or chest x-ray
• Tissue in the form of tissue blocks available
• No brain metastasis or primary brain tumors NOTE: A new classification scheme for adult non-Hodgkin's lymphoma has been adopted by PDQ. The terminology of "indolent" or "aggressive" lymphoma will replace the former terminology of "low", "intermediate", or "high" grade lymphoma.

However, this protocol uses the former terminology.

PATIENT CHARACTERISTICS:

Age:

• 18 and over

Performance status:

• ECOG 0-1

Life expectancy:

• More than 3 months

Hematopoietic:

• Absolute neutrophil count greater than 1,500/mm^3
• Platelet count greater than 100,000/mm^3
• Hemoglobin greater than 8.5 g/dL

Hepatic:

• Bilirubin no greater than 1.5 mg/dL
• SGOT/SGPT no greater than 2.5 times upper limit of normal
• PT (or INR)/PTT normal or not clinically significant
• No preexisting liver disease

Renal:

• Creatinine no greater than 1.5 mg/dL OR
• Creatinine clearance greater than 60 mL/min

Cardiovascular:

• No uncompensated coronary artery disease
• No myocardial infarction or severe/unstable angina within the past 6 months

Other:

• No active infection
• No prior gastrointestinal disorder that would interfere with thalidomide absorption
• No preexisting autoimmune disease
• No medical, psychological, or social problem that would preclude study participation
• No uncontrolled or untreated depression
• No emotional disorder or substance abuse
• No prior seizures or potential risk factors for development of seizures
• HIV negative
• Not pregnant or nursing
• Negative pregnancy test at baseline, weekly for 4 weeks, and then every 2-4 weeks thereafter while on study
• Fertile female patients must use 1 highly active method and 1 additional effective method of contraception for 4 weeks before, during, and for 4 weeks after study
• Fertile male patients must use effective barrier contraception during and for 4 weeks after study participation

PRIOR CONCURRENT THERAPY:

Biologic therapy:

• No more than 1 prior course of unconjugated monoclonal antibody therapy
• No prior conjugated monoclonal antibody (radiolabeled or immunotoxin) therapy
• No prior interferon alfa
• No concurrent hematopoietic growth factors or other cytokines
• No concurrent monoclonal antibodies

Chemotherapy:

• No more than 2 prior chemotherapy regimens (single agent or combination)
• At least 28 days since prior chemotherapy
• No concurrent chemotherapy

Endocrine therapy:

• At least 28 days since prior corticosteroid therapy
• Prior or concurrent megestrol allowed
• No concurrent corticosteroids
• No concurrent hormonal therapy

Radiotherapy:

• Prior palliative radiotherapy to nontarget lesions allowed
• No prior radiotherapy to all sites of measurable disease
• No prior extensive radiotherapy to more than 20% of bone marrow
• No concurrent palliative radiotherapy

Surgery:

• At least 14 days since prior major surgery
• No prior major upper gastrointestinal surgery

Other:

• No other concurrent cytotoxic agents
• No other concurrent investigational therapy
• No other concurrent anticancer therapy