Melphalan With or Without Tumor Necrosis Factor in Treating Patients With Locally Advanced Melanoma of the Arm or Leg

Inclusion Criteria: * Histologically proven locally advanced melanoma of an extremity * One or more evaluable in-transit metastases * All disease within the perfusion field of the extremity (with no local resection options short of amputation) * Disease outside of perfusion field (with no local resection options short of amputation) if all the following are true: * High tumor burden (more than 10 lesions or any single lesion greater than 3 cm) * Presence of pain, edema, skin breakdown, or decreased mobility * Greater than 80% of known tumor is within extremity perfusion field * Life expectancy more than 6 months * No brain metastases * At least 1 bidimensionally measurable lesion * Patients who received prior prophylactic isolated limb perfusion (ILP) must have 1 of the following: * Disease-free interval for at least 6 months after prior ILP with melphalan * Disease-free interval for at least 3 months after prior ILP with an agent other than melphalan * Patients who received prior therapeutic ILP must have 1 of the following: * Partial response of at least 3 months duration after prior ILP with melphalan * Stable response or disease progression after ILP without melphalan (performed at least 3 months prior to study) * Performance status - ECOG 0-2 * Performance status - Zubrod 0-2 * See Disease Characteristics * Platelet count at least 100,000/mm\^3 * WBC greater than 2,500/mm\^3 * Hemoglobin greater than 9 g/dL * Bilirubin less than 1.2…