  The polarization and magnetization effects associated with the dynamical
reduction leading to the nonlinear gyrokinetic Vlasov-Maxwell equations are
shown to introduce nonlinear finite-Larmor-radius effects into a set of
nonlinear reduced-fluid equations previously derived by Lagrangian variational
method [A.J. Brizard, Phys. Plasmas 12, 092302 (2005)]. These intrinsically
nonlinear FLR effects, which are associated with the transformation from
guiding-center phase-space dynamics to gyrocenter phase-space dynamics, are
different from the standard FLR corrections associated with the transformation
from particle to guiding-center phase-space dynamics. We also present the
linear dispersion relation and results from a nonlinear simulation code using
these reduced-fluid equations. The simulation results (in both straight and
dipole geometries) demonstrate that the equations describe the coupled dynamics
of Alfven and sound waves and that the total simulation energy is conserved.
