Inclusion Criteria

DISEASE CHARACTERISTICS:

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

- Stage IB or II disease

- T3, N0-1 disease (stage IIIA)

- Deemed a surgical candidate

- No prior lung cancer (NSCLC or small cell lung cancer)

PATIENT CHARACTERISTICS:

- ECOG performance status (PS) 0-2 OR Karnofsky PS 60-100%

- WBC ≥ 3,000/mm³

- Absolute neutrophil count ≥ 1,500/mm³

- Platelet count ≥ 100,000/mm³

- Bilirubin normal

- AST and ALT ≤ 2.5 times upper limit of normal (ULN)

- Creatinine ≤ 1.5 times ULN

- Not pregnant or nursing

- Negative pregnancy test

- Fertile patients must use effective contraception

- No evidence of severe or uncontrolled systemic disease or any concurrent condition
that, in the opinion of the investigator, would preclude study compliance

- No peripheral neuropathy ≥ grade 2

- No hemoptysis within the past 12 weeks

- No spontaneous bleeding within the past 12 weeks

- No clinically significant cardiac event (e.g., NYHA class II-IV heart disease,
myocardial infarction) within the past 3 months

- No history of asymptomatic sustained ventricular tachycardia or arrhythmia that is
symptomatic or requires treatment, including any of the following:

- Multifocal premature ventricular contractions

- Bigeminy

- Trigeminy

- Ventricular tachycardia

- Uncontrolled atrial fibrillation

- Atrial fibrillation controlled with medication allowed

- No history of QTc prolongation as a result from other medication that required
discontinuation of that medication

- No congenital long QT syndrome or first-degree family relative with an unexplained
death before the age of 40

- No left bundle branch block

- No QTc with Bazett's correction that is unmeasurable or QTc ≥ 480 milliseconds on
screening ECG

- Patients with QTc ≥ 480 milliseconds on screening ECG may have ECG repeated
twice

- Average QTc from the 3 screening ECG's must be < 480 milliseconds

- No uncontrolled hypertension (systolic BP > 160 mm Hg or diastolic BP > 100 mm Hg)

- No active diarrhea or active gastrointestinal disease that may affect the absorption
of study drugs or ability to tolerate study drugs

- No other malignancy within the past 3 years except in situ cervical carcinoma or
adequately treated basal cell or squamous cell carcinoma of the skin

PRIOR CONCURRENT THERAPY:

- More than 4 weeks since major surgery and recovered

- No prior carboplatin, paclitaxel, or vandetanib

- More than 30 days since prior investigational agents

- More than 2 weeks since prior and no concurrent drugs that induce CYP3A4 including,
but not limited to, any of the following:

- Rifampin

- Phenytoin

- Carbamazepine

- Barbiturates

- Hypericum perforatum (St. John's wort)

- No medication that may cause QTc prolongation or induce torsades de pointes for 2
weeks prior to beginning study treatment, during, and for 2 weeks after completion of
study treatment

- No concurrent combination antiretroviral treatment for HIV-positive patients

- No other concurrent investigational agents