  (Please note that the abstract has been significantly shorted) We investigate
Gamma-ray Burst (GRB) internal shocks with moderate magnetization, with the
magnetization parameter $\sigma$ ranging from 0.001 to 10. Possible magnetic
dissipation in the stripped magnetized shells is also taken into account
through introducing a parameter $k$ ($0<k\leq 1$), which is the ratio of the
electric field strength of the downstream and the upstream. By solving the
general MHD jump conditions, we show that the dynamic evolution of the shock
with magnetic dissipation is different from the familiar one obtained in the
ideal MHD limit. In view of the possible high degree of linear polarization of
GRB 021206 and the identification of a possible highly magnetized flow in GRB
990123 and GRB 021211, we suggest that a mildly magnetized internal shock model
($0.01<\sigma<1$) with moderate magnetic dissipation is a good candidate to
explain the GRB prompt emission data.
