We investigate the physics of a magnetic impurity with spin 1/2 in a correl
ated metallic host. Describing the band by a Hubbard Hamiltonian, the probl
em is analyzed using dynamical mean-field theory in combination with Wilson
's nonperturbative numerical renormalization group. We present results for
the single-particle density of states and the dynamical spin susceptibility
at zero temperature. New spectral features (side peaks) are found which sh
ould be observable experimentally. In addition, we find a general enhanceme
nt of the Kondo scale due to correlations. Nevertheless, in the metallic ph
ase, the Kondo scale always vanishes exponentially in the limit of small hy
bridization.