I got NES for the Iphone working, but the controls are for ---steaming pile of meadow muffin---
but then I found out you can use the wiimote and it works a lot better, there is still a slight lag but it is pretty amazing what you can do on that little damn phone
You have to do a soft-hack to get all this stuff to work, but it's really easy and reversible
I probably wouldn't have tried it if I didn't really need to use my Iphone as a wifi hotspot for my computer when we lost power for a few days (the only way to do it is through that soft-hack)
here is video someone made of it (good stuff starts at 2:48)