Inclusion Criteria

DISEASE CHARACTERISTICS:

- Histologically confirmed non-small cell lung cancer

- Stage III (locally advanced) disease

- Unresectable disease

- Carcinoembryonic antigen (CEA)-positive (staining ≥ 20% of cells) tumor by
immunohistochemistry

- HLA-A2-positive

- No distant metastases

PATIENT CHARACTERISTICS:

Age

- 18 and over

Performance status

- ECOG 0-1

Life expectancy

- At least 6 months

Hematopoietic

- Granulocyte count ≥ 1,500/mm^3

- Platelet count ≥ 100,000/mm^3

- Absolute lymphocyte count ≥ 600/mm^3

- Hemoglobin ≥ 10 g/dL

Hepatic

- Bilirubin < 1.5 mg/dL

- AST ≤ 2 times upper limit of normal

- Hepatitis B and C negative

Renal

- Creatinine normal OR

- Creatinine clearance > 60 mL/min

Cardiovascular

- No unstable or newly diagnosed angina pectoris

- No myocardial infarction within the past 6 months

- No New York Heart Association class II-IV congestive heart failure

Immunologic

- HIV negative

- No altered immune function

- No active or history of eczema

- No atopic dermatitis

- No autoimmune disease, including any of the following:

- Autoimmune neutropenia, thrombocytopenia, or hemolytic anemia

- Systemic lupus erythematosus

- Sjögren's syndrome

- Scleroderma

- Myasthenia gravis

- Goodpasture's syndrome

- Addison's disease

- Hashimoto's thyroiditis

- Active Graves' disease

- Multiple sclerosis

- No known history of allergy or serious reaction to prior vaccination with vaccina

- No known allergy to eggs

- No active or history of extensive psoriasis, severe acneiform rash, impetigo,
varicella zoster, burns, or other traumatic or pruritic skin condition

Other

- Not pregnant or nursing

- Negative pregnancy test

- Fertile patients must use effective contraception during and for 4 months after study
participation

- No history of seizures or encephalitis

- Able to avoid close household contact with the following individuals for at least 3
weeks after vaccinia vaccination:

- Children under 3 years of age

- Pregnant or nursing women

- Individuals with a history of or active eczema or other eczematoid skin
disorders

- Individuals with other acute, chronic, or exfoliative skin conditions (e.g.,
atopic dermatitis, impetigo, burns, varicella zoster, severe acne, or other open
rashes or wounds)

- Immunodeficient or immunosuppressed individuals, including HIV-positive persons,
by disease or therapy

- No other active malignancy within the past 2 years

- No other concurrent serious illness

PRIOR CONCURRENT THERAPY:

Biologic therapy

- At least 3 years since prior immunotherapy with related vaccinia and fowlpox vaccines

- At least 3 years since prior antigen-specific peptides

- No other concurrent immunotherapy

Chemotherapy

- No prior paclitaxel or carboplatin for lung cancer

- At least 3 years since prior chemotherapy

- No other concurrent chemotherapy

Endocrine therapy

- No concurrent steroids, except for any of the following:

- Topical steroids

- Inhaled steroids for mild or moderate asthma

- Dexamethasone as premedication for paclitaxel OR for short-term doses (48-72
hours in duration) to control refractory nausea that is not responding to other
antiemetics

- Systemic corticosteroids for ≥ grade 3 radiation pneumonitis

- No steroid eye-drops for at least 3 weeks after vaccinia vaccination

- No concurrent hormonal therapy

- No concurrent systemic glucocorticoids

Radiotherapy

- No prior radiotherapy to the lung fields

- No prior thoracic radiotherapy for lung cancer

- No other concurrent radiotherapy

Surgery

- Surgical scars must be healed

- No prior splenectomy

- No concurrent major surgical procedure

Other

- Recovered from all prior therapy

- No other concurrent anticancer agent or therapy