  We present a series of 2-d ($r,\phi$) hydrodynamic simulations of marginally
self gravitating disks around protostars using an SPH code. We implement simple
dynamical heating and we cool each location as a black body, using a
photosphere temperature obtained from the local vertical structure. We
synthesize SEDs from our simulations and compare them to fiducial SEDs derived
from observed systems. These simulations produce less distinct spiral structure
than isothermally evolved systems, especially in the inner third of the disk.
Pattern are similar further from the star but do not collapse into condensed
objects. The photosphere temperature is well fit to a power law in radius with
index $q\sim1.1$, which is very steep. Far from the star, internal heating
($PdV$ work and shocks) are not responsible for generating a large fraction of
the thermal energy contained in the disk matter. Gravitational torques
responsible for such shocks cannot transport mass and angular momentum
efficiently in the outer disk. Within $\sim$5--10 AU of the star, rapid break
up and reformation of spiral structure causes shocks, which provide sufficient
dissipation to power a larger fraction of the near IR energy output. The
spatial and size distribution of grains can have marked consequences on the
observed near IR SED and can lead to increased emission and variability on
$\lesssim 10$ year time scales. When grains are vaporized they do not reform
into a size distribution similar to that from which most opacity calculations
are based. With rapid grain reformation into the original size distribution,
the disk does not emit near infrared photons. With a plausible modification to
the opacity, it contributes much more.
