Unfortunately we don't have much more than a splash screen on this one, but Stuart Carnie sends word that he's used the Apple SDK to port a Commodore 64 emulator on to the iPhone. He has yet to put in a Save/Resume state mechanism, a way to browse for files and disks, or a virtual keyboard/joystiq to control it with, but the hard stuff is done, so by the time the App Store comes around, we may have a working C64 emu in there ready to go.
As long as it's ok with Apple. In point of fact, we have no idea how any emulators might work in the App Store -- actually, we have no idea how any apps will get in the App Store. Sure, it would be cool to play the original versions of Sim City or Maniac Mansion or Elite, but without Apple's OK to let any of those on the platform, we may not be able to do so without jailbreaking the thing anyway. We'll see -- if Carnie, once his work is done, can't get an official emulator in the App Store, maybe we'll be able to try it out and put it to use in some other, less official way.