FPGA Arcade developer Wolfgang has been busy working on a VIC-20 core for the FPGA Arcade.
It is still beta, but it boots, loads games from *.d64 floppy images or loads *.prg files into RAM where you can run them. Sound works, but needs some final tweaking. There is also support for booting with extra RAM fitted (up to 16KB). He even has the old “Super Expander” cartridge working which adds 3KB of RAM, extra BASIC commands and “hi-res” (don’t laugh!) graphics. I had one of these cartridges when I was a kid.
You can get up to 24k in a vic20, not sure how much software uses it though.
I wonder how this can be done
http://www.youtube.com/watch?v=6Pe3OxyQ2gc