The single-channel Anderson impurity model is a standard model for the desc
ription of magnetic impurities in metallic systems. Usually, the bandwidth
represents the largest energy scale of the problem. In this paper, we analy
ze the limit of a narrow band, which is relevant for the Mott-Hubbard trans
ition in infinite dimensions. For the symmetric model we discuss two differ
ent effects. (i) The impurity contribution to the density of states at the
Fermi surface always turns out to be negative in such systems. This leads t
o a new crossover in the thermodynamic quantities that we investigate using
the numerical renormalization group. (ii) Using the Lanczos method, we cal
culate the impurity spectral function and demonstrate the breakdown of the
skeleton expansion on an intermediate energy scale. Luttinger's theorem, as
an example of the local Fermi liquid property of the model, is shown to st
ill be valid. [S0163-1829(99)50420-7].