Despite the bad rep of this drug due to its unfortunate teratogenic effects on foetuses (principally being deformed limbs), there has been some research into therapeutic uses.
Sadly, thalidomide was originally given in some areas to treat morning sickness.
Thalidomide has been approved for use in Leprosy and is being investigated for use for immunological disorders, AIDS and some cancers (including hepatomas and gliomas). It is contraindicated in pregnancy, unsurprisingly.
Side effects of thalidomide are a skin rash, somnolence and constipation.
more information:
http://cerhr.niehs.nih.gov/genpub/topics/thalidomide2.html
http://www.nlm.nih.gov/pubs/cbm/thalidomide.html