We discuss how local moment physics is modified by the presence of int
eractions in the conduction sea. Interactions in the conduction sea ar
e shown to open up new symmetry channels for the exchange of spin with
localized moments. We illustrate this conclusion in the strong-coupli
ng limit by carrying out a Schrieffer-Wolff transformation for a local
moment in an interacting electron sea, and show that these correction
s become very severe in the approach to a Mott transition.