  We study the two-dimensional Hubbard model with nonmagnetic Zn impurities
modeled by binary diagonal disorder using Quantum Monte Carlo within the
Dynamical Cluster Approximation. With increasing Zn content we find a strong
suppression of d-wave superconductivity concomitant to a reduction of
antiferromagnetic spin fluctuations. $T_c$ vanishes linearly with Zn impurity
concentration. The spin susceptibility changes from pseudogap to Curie-Weiss
like behavior indicating the existence of free magnetic moments in the Zn doped
system. We interpret these results within the RVB picture.
