  We study analytically the effects of inhomogeneous pairing interactions in
short coherence length superconductors, using a spatially varying
Bogoliubov-deGennes model. Within the Born approximation, it reproduces all of
the standard Abrikosov-Gor'kov pairbreaking and gaplessness effects, even in
the absence of actual magnetic impurities. For pairing disorder on a single
site, the T-matrix gives rise to bound states within the
  BCS gap. Our results are compared with recent scanning tunneling microscopy
measurements on Bi$_2$Sr$_2$CaCu$_2$O$_{8+\delta}$ with Zn or Ni impurities.
