Inclusion Criteria

DISEASE CHARACTERISTICS:

- Diagnosis of 1 of the following:

- Acute myeloid leukemia (AML) by FAB criteria (By morphology and routine
histochemistry and confirmed, when possible, by flow cytometric analysis of
surface immunophenotype; co-expression of lymphoid markers permitted)

- High-risk myelodysplastic syndromes defined as IPSS category of intermediate-2
or greater

- Must be considered unsuitable for intensive chemotherapy regimens

- No documented CNS involvement

PATIENT CHARACTERISTICS:

- ECOG performance status 0-2

- AST and ALT ≤ 2 times upper limit of normal (ULN)

- Bilirubin normal

- Creatinine ≤ 1.2 times ULN OR creatinine clearance ≥ 50 mL/min

- Not pregnant or nursing

- Negative pregnancy test

- Fertile patients must use effective contraception

- No history of other malignancies, except adequately treated nonmelanoma skin cancer,
curatively treated in situ carcinoma of the cervix, or other solid tumors curatively
treated with no evidence of disease for ≥ 5 years

- No upper gastrointestinal or other conditions that would preclude compliance with or
administration of oral medication

- No serious illness or medical condition that would not permit the patient to be
managed according to the protocol, including any of the following:

- History of significant neurologic or psychiatric disorder that would impair the
ability to obtain consent

- Active, uncontrolled, serious infections

- Active peptic ulcer disease

- Evidence of bleeding diathesis

- No myocardial infarction within the past 6 months

- No congestive heart failure

- No unstable angina

- No active cardiomyopathy or unstable ventricular arrhythmia

- No poorly controlled hypertension (e.g., systolic BP ≥ 150 mm Hg or diastolic BP ≥ 95
mm Hg)

- No known hypersensitivity to the study drugs or their components

- No preexisting hypothyroidism prior to enrollment unless patient is euthyroid on
medication

- No neuropathy ≥ grade 2

PRIOR CONCURRENT THERAPY:

- At least 2 days since prior hydroxyurea

- No other prior chemotherapy

- No concurrent therapeutic doses (≥ 2 mg/day) of anticoagulants (e.g., warfarin)

- Doses of up to 2 mg/day given for prophylaxis of thrombosis are accepted
provided INR is ≤ 1.5

- No other concurrent experimental drugs or anticancer therapy