Fulham have seen a bid for midfielder Ravel Morrison rejected by the Hammers, who are also trying to strengthen in both defence and in attack themselves.
Allardyce has hit out at the 'havoc' the window creates as he seeks to guide the Hammers from 18th in the Premier League table, with a Capital One Cup semi-final second leg against Manchester City first up as well.
He told the London Evening Standard: "I would think that across the country there is a player at every football club unsettled because of mad January and this lunatic transfer window which creates havoc throughout the game.
"There are rumours that somebody is after your player or you are after somebody else's player and that creates a stir within your club, which is unhealthy based on how many important games you have in this period.
"For us, it's been particularly difficult with the problems we're facing and the transfer window adds to that but it's a problem we have to deal with."
Allardyce conceded a deal for Lacina Traore is "dead" after the Monaco striker seemed to chose Everton over the Hammers.
Mooted moves for Johnny Heitinga, Ishak Belfodil and Joleon Lescott have not materialised.
The only players to put pen to paper at Upton Park are Wolves loanee Roger Johnson, Peterborough teenager Jaanai Gordon and Carlton Cole, who has signed a contract extension until the end of the season.
Allardyce added: "Frustrated is an understatement in the amount of deals we've tried to do in the last six to eight weeks. There are very few deals happening across the board at the moment because it's difficult to get top players at this level at this particular time.
"Later in this window things generally get a bit easier in financial terms, in that clubs want to move the players on. That's why you get a flood of deals in the last few days of the window.
"Our need is to produce a really good signing that can hit the ground running and have an impact right away."