Advanced Tokamak Concepts [C. Kessel, J. Manickam, G. Rewoldt, and W.
M. Tang, Phys. Rev. Lett. 72, 1212 (1994)] have been designed assuming
that the ''Resistive Wall Mode'' (RWM) is stable. It has recently bee
n shown that the RWM can be stabilized by a combination of strong unif
orm plasma rotation and visco-resistive dissipation. In this paper we
examine the consequences of a sheared flow on the RWM, and contrast th
e results to the case of uniform flow. It is shown that, as for unifor
m flow, the rotation initially further destabilizes the resistive wall
mode, but for higher rotation velocities the growth rate is reduced,
and the presence of plasma dissipation may completely stabilize the mo
de. However sheared rotation allows the possibility of the RWM couplin
g to and converting into a Kelvin-Helmholtz mode. It is shown that the
position of the wall with respect to the critical position for stabil
ization of the external kink mode is of crucial importance.