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I've been trying to find some confirmation as well, but the only sources I can find to dispute this so far are what I consider left wing. It is just hard for me to believe that Zumwalt would have to pay attention to a small organization like Kerry's when the CO of that outfit, Roy Hoffman, was supposed to be a total hard ass and I would imagine that if civilians were Kerry's usual target Hoffman would have had the guy relieved.
SEALS on the other hand were even then kind of high vis. Bob Kerrey has been forced to admit that he shot up some civilians around the same time.
I just don't want this to get blown out of proportion and then be debunked like the intern thing.

From the New York Sun, 3/1/04, by Thomas Lipscomb

Taking a look at Mr. Kerry’s much-promoted Vietnam service, his military record was, indeed, remarkable in many ways. Last week, the former assistant secretary of defense and Fletcher School of Diplomacy professor, W. Scott Thompson, recalled a conversation with the late Admiral Elmo R. Zumwalt Jr. that clearly had a slightly different take on Mr. Kerry’s recollection of their discussions:

“[T]he fabled and distinguished chief of naval operations,Admiral Elmo Zumwalt, told me — 30 years ago when he was still CNO —that during his own command of U.S. naval forces in Vietnam, just prior to his anointment as CNO, young Kerry had created great problems for him and the other top brass,by killing so many non-combatant civilians and going after other non-military targets. ‘We had virtually to straitjacket him to keep him under control,’ the admiral said. ‘Bud’ Zumwalt got it right when he assessed Kerry as having large ambitions — but promised that his career in Vietnam would haunt him if he were ever on the national stage.” And this statement was made despite the fact Zumwalt had personally pinned a Silver Star on Mr. Kerry.

This is quoted on a blog from a published article, with a named source. I'll try to independently confirm this from the N.Y. Sun website.