  We present a theory for recent STM studies of Zn impurities in the
superconductor BSCCO, using insights from NMR experiments which show that there
is a net S=1/2 moment on the Cu ions near the Zn. We argue that the Kondo spin
dynamics of this moment is the origin of the low bias peak in the differential
conductance, rather than a resonance in a purely potential scattering model.
The spatial and energy dependence of the STM spectra of our model can also fit
the experiments.
