Virtualbreadboard has a new VBB4Arduino 'Two Arduino's' edition which includes BOTH a JVM Arduino emulator AND a AVR Instruction set simulator with examples that cover almost all of the Arduino distribution examples and a bunch of peripheral hardware - LCD's, WS2812 Neo LEDS, Motors, Servo's, Logic Analyser and more. The $9.99 special offer is hard to beat.
http://www.virtualbreadboard.com
Disclaimer: I am the author of Virtual Breadboard
