A theory of the nonlinear growth and propagation of magnetic islands in the semi-collisional regime is presented. The theory includes the effects of finite electron temperature gradients and uses a fluid model with cold ions in slab geometry to describe islands that are unmagnetized in the sense that their width is less than ρs, the ion Larmor radius calculated with the electron temperature. The polarization integral and the natural phase velocity are both calculated. It is found that increasing the electron temperature gradient reduces the natural phase velocity below the electron diamagnetic frequency and thus causes the polarization current to become stabilizing.