Melphalan With or Without Tumor Necrosis Factor in Treating Patients With Locally Advanced Melanoma of the Arm or Leg

Inclusion Criteria:

* Histologically proven locally advanced melanoma of an extremity

  * One or more evaluable in-transit metastases
  * All disease within the perfusion field of the extremity (with no local resection options short of amputation)
  * Disease outside of perfusion field (with no local resection options short of amputation) if all the following are true:

    * High tumor burden (more than 10 lesions or any single lesion greater than 3 cm)
    * Presence of pain, edema, skin breakdown, or decreased mobility
    * Greater than 80% of known tumor is within extremity perfusion field
    * Life expectancy more than 6 months
    * No brain metastases
* At least 1 bidimensionally measurable lesion
* Patients who received prior prophylactic isolated limb perfusion (ILP) must have 1 of the following:

  * Disease-free interval for at least 6 months after prior ILP with melphalan
  * Disease-free interval for at least 3 months after prior ILP with an agent other than melphalan
* Patients who received prior therapeutic ILP must have 1 of the following:

  * Partial response of at least 3 months duration after prior ILP with melphalan
  * Stable response or disease progression after ILP without melphalan (performed at least 3 months prior to study)
* Performance status - ECOG 0-2
* Performance status - Zubrod 0-2
* See Disease Characteristics
* Platelet count at least 100,000/mm\^3
* WBC greater than 2,500/mm\^3
* Hemoglobin greater than 9 g/dL
* Bilirubin less than 1.25 times ULN
* AST and ALT less than 2 times ULN
* Alkaline phosphatase less than 2 times ULN
* Coagulation studies normal or within 1 second of upper limit of normal (ULN)
* Creatinine less than 1.5 mg/dL
* Creatinine clearance greater than 50 mL/min
* Calcium less than 12 mg/dL
* No severe peripheral vascular disease (claudication or other ischemic peripheral vascular disease \[e.g., venous thrombosis or occlusive peripheral arterial disease\])
* No New York Heart Association class II-IV heart disease (congestive heart failure)
* No uncontrolled or life-threatening cardiac arrhythmia
* No myocardial infarction within the past year
* No unstable angina
* No symptomatic cerebral or carotid artery disease
* No pulmonary embolism within the past year
* Other prior malignancy allowed if completed curative therapy, disease-free for at least 5 years, and at low risk for recurrence
* No active peptic ulcer disease within the past year
* Not pregnant or nursing
* Negative pregnancy test
* Fertile patients must use effective contraception
* No known melphalan hypersensitivity
* No known hypersensitivity to any component of tumor necrosis factor alpha formulation
* No contraindications to ionotropic agents (e.g., dopamine or neosynephrine)
* No concurrent infections uncontrolled with antibiotics
* HIV negative
* At least 1 month since prior biologic therapy
* See Disease Characteristics
* At least 1 month since prior chemotherapy
* At least 4 months since prior isolated limb perfusion
* At least 1 month since prior radiotherapy
* See Disease Characteristics
* At least 12 months since prior coronary artery surgery or angioplasty