Simon Kagstrom has released a new version of Frodo a Commodore 64 emulator for the Nintendo Wii:

Frodo is a Commodore 64 emulator written by Christian Bauer (http://frodo.cebix.net). It was ported to the Wii by Simon Kagstrom, and many C64 games are fully playable on the Wii with it. So go ahead and beat your friends in International Karate, Boulder Dash or Bomb Jack. It does not share any code with FrodoWii, but would be happy to integrate improvements from it!

The emulator works best in 480i mode. It runs perfectly fine in 576i mode as well, but does not utilize the full resolution. This is an SDL issue, and will not be fixed until SDL-Port supports it. Sound support is slightly buggy, but usable. The emulation itself is not perfect, so not all games will run under Frodo. Unfortunately, I cannot do very much about this since I haven't written the emulator - just ported it. If you have multiple versions of a game, try each of them as often at least one will work.

v9
It's now possible to start hosting a network game "in the background" and continue using the emulator while waiting for someone to connect
Networking support now works (but without sound being transferred). A broker is installed on c64-network.game-host.org.
Link with Yohanes port of SDL, modified by Danny Milo to get USB keyboards working while still having the Home key do what it should
There are sound cracks in this version, caused by the new SDL (unsure why)

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