The C64 is the computer I grew up with and it's the machine of many, many fond memories for me. I have an emulator on my computer and play many old classics every once in a while. I even have one for my Touch Pro phone but its hard to use because of the lack of a good D-pad and right now Windows 6.5 doesn't support multi-touch like the iPhone.
But, one company managed to get a license to create a Commodore 64 emulator
with a few games and they even got Apple's OK beforehand to do so. But, as soon as he submitted it Apple rejected it because it violates some portion of the agreemenet for the SDK. The issues though are there are a few apps already on the App Store that are emulators and Apple gave their OK beforehand. Take a look at the video and see how cool it is and I hope Apple comes around to approving the app. I'm still not buying an iPhone or iTouch though. :)