We present a theory for recent STM: studies of Zn impurities in the superco
nductor Bi2Sr2CaCu2O8+delta, using insights from NMR experiments which show
that there is a net S = 1/2 moment on the Cu ions near the Zn. We argue th
at the Kondo spin dynamics of this moment is the origin of the low bias pea
k in the differential conductance, rather than a resonance in a purely pote
ntial scattering model. The spatial and energy dependence of the STM spectr
a of our model can also fit the experiments.