Inclusion Criteria

DISEASE CHARACTERISTICS:

- Histologically confirmed resectable non-small cell lung cancer (NSCLC), meeting 1 of
the following clinical staging criteria:

- Stage IA or IB (T1-2, N0)

- Stage II (T1-2, N1 with negative mediastinoscopy or T3, N0)

- Stage IIIA (T3, N1 with negative mediastinoscopy)

- Level 10 hilar nodes may be positive provided mediastinoscopy is negative

- The following are not allowed (as evidenced by clinical staging criteria [CT scan,
positron-emission tomography (PET) scan, or mediastinoscopy):

- Positive N2 lymph nodes (ipsilateral/subcarinal mediastinal lymph nodes)

- Positive N3 lymph nodes (contralateral mediastinal/hilar and
supraclavicular/scalene lymph nodes)

- T4 primary tumor (malignant pleural effusion or mediastinal invasion)

- Symptomatic tumors (T3, N0-1) involving the superior sulcus (i.e., Pancoast
tumors)

- Measurable disease by contrast-enhanced CT scan

- No metastatic disease (except peribronchial or hilar lymph node involvement [N1]) by
fludeoxyglucose F 18 PET scan

- No malignant pleural effusion by preoperative evaluation

- Pleural effusions visible only on CT scan that are not large enough for safe
thoracentesis are allowed

- No exudative effusions (even if cytologically negative), as evidenced by any of
the following:

- Ratio of pleural fluid protein to serum protein > 0.5

- Ratio of pleural fluid lactic dehydrogenase (LDH) to serum LDH ≥ 0.6

- Pleural fluid LDH > 200 IU/L

- No superior vena cava syndrome

- No spinal cord compression

PATIENT CHARACTERISTICS:

Age

- 18 and over

Performance status

- Eastern Cooperative Oncology Group (ECOG) 0-1

Life expectancy

- Not specified

Hematopoietic

- WBC ≥ 4,000/mm^3

- Absolute granulocyte count ≥ 1,500/mm^3

- Platelet count ≥ 100,000/mm^3

Hepatic

- Bilirubin ≤ 1.5 times upper limit of normal (ULN)

- AST or ALT ≤ 2 times ULN

- Alkaline phosphatase ≤ 2 times ULN

Renal

- Creatinine < 1.5 times ULN

Cardiovascular

- No uncontrolled ventricular arrhythmia

- No myocardial infarction within the past 3 months

Pulmonary

- Pre-resection FEV_1 > 2.0 L OR

- Predicted post-resection FEV_1 > 1.0 L

- No clinically active interstitial lung disease

- Chronic stable asymptomatic radiographic changes allowed

- No post-obstructive pneumonia

Other

- Not pregnant or nursing

- Negative pregnancy test

- Fertile patients must use effective contraception

- Willing to provide tumor biopsy pre- and post-gefitinib administration AND undergo
PET scan

- No known severe hypersensitivity to study drug or any of its excipients

- No uncontrolled major seizure disorder

- No unstable or uncontrolled diabetes mellitus

- No serious infection requiring IV antibiotics

- No grade 3 neuropathy

- No other malignancy within the past 5 years except adequately treated basal cell or
squamous cell skin cancer or carcinoma in situ of the cervix

- No other unstable or serious medical condition that would preclude study treatment or
surgery

- No psychiatric disorder that would preclude giving informed consent

- No psychological, familial, sociological, or geographical condition that would
preclude study compliance and follow up

- No other significant clinical disorder or laboratory finding that would preclude
study participation

PRIOR CONCURRENT THERAPY:

Biologic therapy

- Not specified

Chemotherapy

- No prior or concurrent systemic chemotherapy for NSCLC

Endocrine therapy

- Not specified

Radiotherapy

- No prior or concurrent radiotherapy for NSCLC

Surgery

- Recovered from prior oncologic or other major surgery

- At least 5 years since prior resection of lung disease

- No prior surgery for NSCLC

- No concurrent ophthalmic surgery

Other

- More than 30 days since prior non-approved or investigational drugs

- No other concurrent therapy for NSCLC

- No other concurrent investigational therapy

- No concurrent use of any of the following medications:

- Phenytoin

- Carbamazepine

- Barbiturates (e.g., phenobarbital)

- Rifampin

- Hypericum perforatum (St. John's wort)