[ame=http://www.youtube.com/watch?v=-VA3NB-jpGA&feature=player_embedded]YouTube - C64 for iPhone[/ame]
AppleInsider reports that Apple has approved Manomio's Commodore 64 emulator, having rejected it in June because of its inclusion of a BASIC interpreter. Apple explicitly forbade apps from launching their own any executable code in the licensing for the version 2.0 SDK.
The ability of apps in 3.0 to enable in-app purchasing allowed Manomio to work around the limitation. Perhaps better characterized as a simulator rather than a true emulator, the Manomio app cannot run arbitrary C64 code, but only disk images licensed by the company.