Tanespimycin and Cytarabine in Treating Patients With Relapsed or Refractory Acute Myeloid Leukemia, Acute Lymphoblastic Leukemia, Chronic Myelogenous Leukemia, Chronic Myelomonocytic Leukemia, or Myelodysplastic Syndromes

Inclusion Criteria:

* Diagnosis of 1 of the following:

  * Acute myeloid leukemia, except acute promyelocytic leukemia (M3 disease), meeting 1 of the following criteria:

    * Failed to achieve complete remission (CR) after initial induction therapy regimen\*
    * First relapse within 1 year of initial CR
    * Failed re-induction therapy at first or second relapse
    * Second or third relapse after completing ≤ 3 different induction therapy regimens
    * Antecedent hematologic disorder (myelodysplastic syndromes \[MDS\], chronic myeloproliferative disease, or chronic myelomonocytic leukemia \[CMML\])
    * Received prior chemotherapy for a non-hematologic malignancy
    * High-risk cytogenetic abnormalities (abnormalities of chromosome 5, 7, 8, or 11 OR ≥ 3 karyotypic abnormalities)
  * Acute lymphoblastic leukemia, meeting 1 of the following criteria:

    * Failed to achieve CR after initial induction therapy regimen
    * First relapse within 1 year of initial CR
    * Failed re-induction therapy at first or second relapse
    * Second or third relapse after completing ≤ 3 different induction therapy regimens
  * Chronic myelogenous leukemia, meeting the following criteria:

    * Accelerated OR blast phase (\> 10% increase in the blast percentage in bone marrow)
    * Failed prior imatinib mesylate

      * No more than 1 prior chemotherapy regimen in addition to imatinib mesylate
  * CMML, meeting the following criteria:

    * More than 10% increase in blast percentage AND organ infiltration OR impending marrow failure as evidenced by cytopenia
    * No t(5;12) by cytogenetics (unless failed prior trial of imatinib mesylate)
  * High-grade MDS, defined as \> 10% blasts on marrow cellularity (refractory anemia with excess blasts in transformation) OR International Prognostic Scoring System MDS prognostic score \> 1.5
* Not a candidate for allogenic bone marrow transplantation\* from a related sibling donor (i.e., HLA-identical sibling)
* No known standard or potentially curative therapy exists or is capable of extending life expectancy
* No clinical symptoms suggesting CNS leukemia
* Performance status - ECOG 0-2
* At least 60 days
* See Disease Characteristics
* Bilirubin ≤ 1.5 times upper limit of normal (unless attributed to underlying disease)
* Creatinine clearance ≥ 60 mL/min
* No New York Heart Association class III-IV heart failure
* No myocardial infarction within the past year
* LVEF ≥ 40% by MUGA
* No cardiac symptoms ≥ grade 2
* No uncontrolled dysrhythmia requiring medication
* No poorly controlled angina
* QTc ≤ 450 msec for men and ≤ 470 msec for women
* No congenital long QT syndrome
* No left bundle branch block
* No ischemic heart disease within the past 6 months
* 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 active uncontrolled infection
* No history of serious allergic reaction to eggs
* No known HIV infection or AIDS (with or without highly active antiretroviral treatment)
* DLCO \> 80%
* No pulmonary symptoms ≥ grade 2
* No symptomatic pulmonary disease requiring medication including any of the following:

  * Dyspnea on or off exertion
  * Paroxysmal nocturnal dyspnea
  * Significant pulmonary disease (e.g., chronic obstruction/restrictive pulmonary disease)
* No oxygen requirement

  * No home oxygen that meets the medicare requirement
* 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 psychosis
* No other serious underlying medical condition that would preclude study participation
* No prior allogeneic or autologous bone marrow transplantation
* No concurrent immunotherapy
* No concurrent biologic agents
* No concurrent gene therapy
* See Disease Characteristics
* Recovered from prior chemotherapy
* At least 48 hours since prior hydroxyurea for prevention of leukostasis
* No other concurrent chemotherapy
* At least 48 hours since prior glucocorticoids for prevention of leukostasis
* No prior radiotherapy that included the heart in the field (e.g., mantle) or chest
* No concurrent radiotherapy
* No concurrent drugs that may cause QTc prolongation
* No concurrent participation in another clinical trial involving a pharmacologic agent for symptom control or therapeutic intent
* No other concurrent investigational drugs or therapy