What Manomio has done is to create a fully licensed Commodore 64 emulator for the iPhone that can play classic games and even run Commodore 64 BASIC. The full list of features are as follows:
* Full speed, Commodore 64 emulator
* SID sound emulation
* Auto-save, to continue exactly where you left off
* Realistic joystick and beautifully crafted C64 keyboard
* Portrait and Landscape play
* Vertical and Fullscreen gaming (auto rotate for iPod users)
Did I mention it was legally licensed?