Inclusion Criteria

DISEASE CHARACTERISTICS:

- Diagnosed with any of the following:

- Acute myeloid leukemia (AML), meeting 1 of the following criteria:

- Recurrent disease in remission, defined as morphological remission with
bone marrow aspirate/biopsy showing ≤ 5% within 4 weeks before the start of
study treatment (cytogenetic or molecular remission is not required)

- In first complete remission (CR1) with poor-risk cytogenetics, antecedent
hematological disease (i.e., myelodysplasia), or treatment-related leukemia

- Acute lymphoblastic leukemia (ALL), meeting 1 of the following criteria:

- Recurrent disease in remission, defined as morphological remission with
bone marrow aspirate/biopsy showing ≤ 5% within 4 weeks before the start of
study treatment (cytogenetic or molecular remission is not required)

- CR1 with Philadelphia chromosome or poor-risk cytogenetics

- Chronic myelogenous leukemia (CML), meeting the following criteria:

- First or second chronic phase

- Must be documented disease progression after imatinib mesylate therapy
OR documented lack of cytogenetic response 6 months post-imatinib
mesylate initiation OR imatinib mesylate intolerance

- Chronic lymphocytic leukemia (CLL), meeting the following criteria:

- Recurrent disease after fludarabine-based therapy

- Must have chemosensitive disease at the time of relapse, defined as
greater than 50% reduction of WBC and lymphadenopathy

- Recurrent Hodgkin lymphoma, recurrent non-Hodgkin lymphoma (NHL) (low-,
intermediate-, or high-grade disease*), or transformed NHL, meeting 1 of the
following criteria:

- Received prior autologous transplantation and cytoreductive therapy at the
time of relapse to achieve complete remission (CR) or CR/unconfirmed (CRu)
as defined by the International Workshop

- Relapsed disease that required more than 2 salvage regimens to achieve CR
or CRu

- Recurrent multiple myeloma, meeting the following criteria:

- Must have received prior autologous transplantation and demonstrate
chemosensitivity at the time of relapse, defined as greater than 50%
reduction of M-component or plasma-cell marrow infiltration

- Myelodysplastic syndrome

- Refractory anemia (RA)/RA with ringed sideroblasts (RARS), refractory
cytopenia with multilineage dysplasia (RCMD)/refractory cytopenia with
multilineage dysplasia with ringed sideroblasts (RCMD-RS), or RA with
excess blasts (RAEB) I, meeting the following criteria:

- Must be transfusion-dependent and have an IPSS score ≥ 1.5, based on
WHO criteria

- No RAEB II or del(5q)

- No uncontrolled CNS metastases

- 5-6/6 HLA-matched sibling or 9-10/10 matched unrelated donor (both patient and donor)
available NOTE: *A new classification scheme for adult non-Hodgkin lymphoma has been
adopted by PDQ. The terminology of "indolent" or "aggressive" lymphoma will replace
the former terminology of "low", "intermediate", or "high" grade lymphoma. However,
this protocol uses the former terminology.

PATIENT CHARACTERISTICS:

- Karnofsky performance status ≥ 50%

- Serum creatinine ≤ 2 mg/dL

- Not pregnant

- Fertile patients must use effective contraception

- 50 years of age or older

- Patients 18-50 years of age are eligible if meeting 1 of the following criteria:

- Have a preexisting medical condition

- Received prior therapy (i.e., autologous transplantation) and are
considered to be too high risk for conventional myeloablative
transplantation

- Must be willing to accept or comprehend irreversible sterility as a side effect of
therapy

- No uncontrolled active infection

- No psychiatric illness or mental deficiency making compliance with treatment or
informed consent impossible

- Cardiac ejection fraction ≥ 30%

- Corrected pulmonary-diffusing capacity ≥ 35%

- No serologic evidence of infection with HIV

- No decompensated liver disease with serum bilirubin > 2.0 mg/dL

PRIOR CONCURRENT THERAPY:

- See Disease Characteristics