  The single impurity Kondo model is often used to describe metals with dilute
concentrations (n_i) of magnetic impurities. Here we examine how dilute the
impurities must be for this to be valid by developing a virial expansion in
impurity density. The O(n_i^2) term is determined from results on the
2-impurity Kondo problem by averaging over the RKKY coupling. The non-trivial
fixed point of the 2-impurity problem could produce novel singularities in the
heat capacity of dilute alloys at O(n_i^2).
