I started to write a long post about the specifics about the C64 graphics hardware and my ideas about how to try to simulate the effect, but then thought that it'd be faster to just try it out.
I posted the results in my blog
here.
My test is just still images, but the same thing can be done on a film strip image that you export from After Effects. I don't think you can do it in just AE (in a convenient way). I'd love to try it on video material.
Martin Vilcans
Stockholm, Sweden
www.librador.com