Inclusion Criteria:

- Patients with unresectable hepatocellular carcinoma.

- MRI of liver must show discrete tumor nodules. Lesions on angiography must be
hypervascular.

- Patient must have the following minimum labs: ANC> 1200/mm3; Hemoglobin > 8 mg/dl;
platelets > 50,000 mm3; hepatic transaminases < 5x normal; bilirubin < 3.0 mg/dl; and
creatinine < 1.5 mg/dl.

- ECOG performance status > 2.

- No history of prior chemotherapy or biologic therapy for hepatocellular carcinoma.

- No other history of malignancy other than curatively resected basal cell carcinoma of
the skin or carcinoma in situ of the cervix.

- Patients must not be pregnant or lactating.

- Sexually active men and women of childbearing age must use adequate contraception.
All patients must understand the potential for severe birth defects with thalidomide
and must be able to follow instructions to avoid conception while taking thalidomide