  We study the transport properties of a quantum dot embedded in an
Aharonov-Bohm ring in the presence of spin-orbit interactions. Using a
numerical renormalization group analysis of the system in the Kondo regime, we
find that the competition of Aharonov-Bohm and spin-orbit dynamical phases
induces a strong suppression of the Kondo state singlet, somewhat akin to an
effective intrinsic magnetic field in the system. This effective field breaks
the spin degeneracy of the localized state and produces a finite magnetic
moment in the dot. By introducing an {\em in-plane} Zeeman field we show that
the Kondo resonance can be fully restored, reestablishing the spin singlet and
a desired spin filtering behavior in the Kondo regime, which may result in full
spin polarization of the current through the ring.
