  We study a model of a d-wave superconductor with strong potential scatterers
in the presence of antiferromagnetic correlations and apply it to experimental
nuclear magnetic resonance (NMR) results on Zn impurities in the
superconducting state of YBCO. We then focus on the contribution of
impurity-induced paramagnetic moments, with Hubbard correlations in the host
system accounted for in Hartree approximation. We show that local magnetism
around individual impurities broadens the line, but quasiparticle interference
between impurity states plays an important role in smearing out impurity
satellite peaks. The model, together with estimates of vortex lattice effects,
provides a semi-quantitative description of the impurity concentration
dependence of the NMR line shape in the superconducting state, and gives a
qualitative description of the temperature dependence of the line asymmetry. We
argue that impurity-induced paramagnetism and resonant local density of states
effects are both necessary to explain existing experiments.
