DISEASE CHARACTERISTICS:

• Histologically confirmed non-small cell lung cancer

  • Stage III (locally advanced) disease
• Unresectable disease
• Carcinoembryonic antigen (CEA)-positive (staining ≥ 20% of cells) tumor by immunohistochemistry
• HLA-A2-positive
• No distant metastases

PATIENT CHARACTERISTICS:

Age

• 18 and over

Performance status

• ECOG 0-1

Life expectancy

• At least 6 months

Hematopoietic

• Granulocyte count ≥ 1,500/mm^3
• Platelet count ≥ 100,000/mm^3
• Absolute lymphocyte count ≥ 600/mm^3
• Hemoglobin ≥ 10 g/dL

Hepatic

• Bilirubin < 1.5 mg/dL
• AST ≤ 2 times upper limit of normal
• Hepatitis B and C negative

Renal

• Creatinine normal OR
• Creatinine clearance > 60 mL/min

Cardiovascular

• No unstable or newly diagnosed angina pectoris
• No myocardial infarction within the past 6 months
• No New York Heart Association class II-IV congestive heart failure

Immunologic

• HIV negative
• No altered immune function
• No active or history of eczema
• No atopic dermatitis

• No autoimmune disease, including any of the following:

  • Autoimmune neutropenia, thrombocytopenia, or hemolytic anemia
  • Systemic lupus erythematosus
  • Sjögren's syndrome
  • Scleroderma
  • Myasthenia gravis
  • Goodpasture's syndrome
  • Addison's disease
  • Hashimoto's thyroiditis
  • Active Graves' disease
  • Multiple sclerosis
• No known history of allergy or serious reaction to prior vaccination with vaccina
• No known allergy to eggs
• No active or history of extensive psoriasis, severe acneiform rash, impetigo, varicella zoster, burns, or other traumatic or pruritic skin condition

Other

• Not pregnant or nursing
• Negative pregnancy test
• Fertile patients must use effective contraception during and for 4 months after study participation
• No history of seizures or encephalitis

• Able to avoid close household contact with the following individuals for at least 3 weeks after vaccinia vaccination:

  • Children under 3 years of age
  • Pregnant or nursing women
  • Individuals with a history of or active eczema or other eczematoid skin disorders
  • Individuals with other acute, chronic, or exfoliative skin conditions (e.g., atopic dermatitis, impetigo, burns, varicella zoster, severe acne, or other open rashes or wounds)
  • Immunodeficient or immunosuppressed individuals, including HIV-positive persons, by disease or therapy
• No other active malignancy within the past 2 years
• No other concurrent serious illness

PRIOR CONCURRENT THERAPY:

Biologic therapy

• At least 3 years since prior immunotherapy with related vaccinia and fowlpox vaccines
• At least 3 years since prior antigen-specific peptides
• No other concurrent immunotherapy

Chemotherapy

• No prior paclitaxel or carboplatin for lung cancer
• At least 3 years since prior chemotherapy
• No other concurrent chemotherapy

Endocrine therapy

• No concurrent steroids, except for any of the following:

  • Topical steroids
  • Inhaled steroids for mild or moderate asthma
  • Dexamethasone as premedication for paclitaxel OR for short-term doses (48-72 hours in duration) to control refractory nausea that is not responding to other antiemetics
  • Systemic corticosteroids for ≥ grade 3 radiation pneumonitis
• No steroid eye-drops for at least 3 weeks after vaccinia vaccination
• No concurrent hormonal therapy
• No concurrent systemic glucocorticoids

Radiotherapy

• No prior radiotherapy to the lung fields
• No prior thoracic radiotherapy for lung cancer
• No other concurrent radiotherapy

Surgery

• Surgical scars must be healed
• No prior splenectomy
• No concurrent major surgical procedure

Other

• Recovered from all prior therapy
• No other concurrent anticancer agent or therapy