Check this out. A fully-functional, licensed Commodore 64 emulator for the iPhone. Pretty sweet. But sadly, Apple rejected the app “based on the SDK clause specifically prohibiting interpreted or executable code.” Lame.

The app would have played 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).

It was legally licensed and everything. Then last week, when they submitted C64 for iPhone along with 3 individual gamepacks (officially licensed) to use along with the emulator, they received the App Store rejection email. That just plain sucks.

[toucharcade]