We analyze evolution of live disk-halo systems in the presence of various gas fractions, f_gas less than 8% in the disk. We addressed the issue of angular momentum (J) transfer from the gas to the bar and its effect on the bar evolution. We find that the weakening of the bar, reported in the literature, is not related to the J-exchange with the gas, but is caused by the vertical buckling instability in the gas-poor disks and by a steep heating of a stellar velocity dispersion by the central mass concentration (CMC) in the gas-rich disks. The gas has a profound effect on the onset of the buckling -- larger f_gas brings it forth due to the more massive CMCs. The former process leads to the well-known formation of the peanut-shaped bulges, while the latter results in the formation of progressively more elliptical bulges, for larger f_gas. The subsequent (secular) evolution of the bar differs -- the gas-poor models exhibit a growing bar while gas-rich models show a declining bar whose vertical swelling is driven by a secular resonance heating. The border line between the gas-poor and -rich models lies at f_gas ~ 3% in our models, but is model-dependent and will be affected by additional processes, like star formation and feedback from stellar evolution. The overall effect of the gas on the evolution of the bar is not in a direct J transfer to the stars, but in the loss of J by the gas and its influx to the center that increases the CMC. The more massive CMC damps the vertical buckling instability and depopulates orbits responsible for the appearance of peanut-shaped bulges. The action of resonant and non-resonant processes in gas-poor and gas-rich disks leads to a converging evolution in the vertical extent of the bar and its stellar dispersion velocities, and to a diverging evolution in the bulge properties.

12 pages, 12 figures, accepted for publication by the Astrophysical Journal. Minor corrections following the referee report