Manomio released a new version of the C64 emulator for the iPhone. Support for your iCADE controllers such as iControlPad or Gametel. The emulator is compatible with iOS 5. The latest games are: The Last Ninja I, II, III, International Karate and Armalyte. You can also see if you are the best in a game with the global leaderboards using OpenFeint.
Demonstration video of the C64 emulator on the iPhone.