The nonlinear undular mode of the magnetic buoyancy instability in an isolated horizontal magnetic flux embedded in a two-temperature layered atmosphere (solar corona-chromosphere/photosphere) is investigated using a two-dimensional magnetohydrodynamic code. The results show that the flux sheet with beta of about 1 is initially located at the bottom of the photosphere, and that the gas slides down the expanding loop as the instability develops, with the evacuated loop rising as a result of enhanced magnetic buoyancy. The expansion of the magnetic loop in the nonlinear regime displays self-similar behavior. The rise velocity of the magnetic loop in the high chromosphere (10-15 km/s) and the velocity of downflow noted along the loop (30-50 km/s) are consistent with observed values for arch filament systems.