Inclusion Criteria

DISEASE CHARACTERISTICS:

- Histologically confirmed multiple myeloma by one of the following:

- Biopsy of an osteolytic lesion or soft tissue tumor composed of plasma cells

- Bone marrow aspirate and/or biopsy demonstrating ≥ 10% plasmacytosis

- Bone marrow < 10% plasma cells but with ≥ 1 bony lesion AND meets the M-protein
criteria

- Ineligible for stem cell transplantation due to any of the following:

- Advanced age

- Comorbid illness

- Patient preference

- Previously untreated disease

- Measurable (i.e., quantifiable) serum M-component of IgG, IgA, IgD, or IgE at initial
diagnosis OR, if only light-chain disease is present (urine M-protein only), urinary
excretion of light-chain protein (Bence Jones) ≥ 1.0 g/24 hours at initial diagnosis

- No nonsecretory myeloma

PATIENT CHARACTERISTICS:

- ECOG performance status 0-2

- Life expectancy ≥ 12 months

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

- Platelet count ≥ 150,000/mm^3

- Creatinine ≤ 3 times upper limit of normal (ULN)

- Bilirubin ≤ 1.5 times ULN

- AST and/or ALT ≤ 1.5 times ULN

- Alkaline phosphatase ≤ 1.5 times ULN

- Not pregnant or nursing

- Negative pregnancy test

- Fertile patients must use 2 methods of effective contraception during and for 4 weeks
after completion of study treatment

- No other malignancies within the past 5 years, except adequately treated nonmelanoma
skin cancer or curatively treated in situ cancer of the cervix

- No hypersensitivity to thalidomide or its components, including the development of a
desquamating rash

- No other serious illness or medical condition that would preclude study participation

- No history of significant neurologic or psychiatric disorder that would preclude
informed consent

- No known HIV positivity

- No pre-existing cardiovascular conditions and/or symptomatic cardiac dysfunction,
including any of the following:

- Significant cardiac event (including symptomatic heart failure or angina) within
3 months prior to randomization

- Any cardiac disease that increases risk for ventricular arrhythmia

- History of ventricular arrhythmia that was symptomatic or required treatment,
including any of the following:

- Multifocal premature ventricular contractions

- Bigeminy

- Trigeminy

- Ventricular tachycardia/fibrillation/flutter/arrhythmia NOS

PRIOR CONCURRENT THERAPY:

- No prior chemotherapy or corticosteroids for the treatment of multiple myeloma

- Prior corticosteroids for the treatment of hypercalcemia or spinal cord
compression allowed provided maximum levels have not been reached (i.e.,< 120 mg
for dexamethasone or < 792 mg for prednisone)

- Prior radiotherapy to single sites for pain control or local plasmacytoma allowed

- Prior or concurrent bisphosphonates allowed

- At least 28 days since prior investigational anticancer agents or therapy

- No concurrent corticosteroids above physiologic replacement doses

- Concurrent radiotherapy to sites of active myeloma with pain or neurologic compromise
allowed

- No concurrent filgrastim (G-CSF) on day 1 of course 1

- No other concurrent anticancer therapy

- No other concurrent investigational therapy