In this paper we consider a set of nonlinear MHD equations that admits
in a linear approximation a solution in the form of a slow sausage su
rface wave travelling along an isolated magnetic slab. For a wave of s
mall but finite amplitude, we investigate how a slowly varying amplitu
de is modulated by nonlinear self-interactions. A stretching transform
ation shows that, at the lowest order of an asymptotic expansion, the
original set of equations with appropriate boundary conditions (free i
nterfaces) can be reduced to the cubic nonlinear Schrodinger equation,
which determines the amplitude modulation. We study analytically and
numerically the evolution of impulsively generated waves, showing a tr
ansition of the initial states into a train of solitons and periodic w
aves. The possibility of the existence of solitary waves in the solar
atmosphere is also briefly discussed.