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To get an 80-col image out of your C128, you need to handle the following things:

1. the C128's VDC outputs a digital RGBIHV (R-G-B-Intensity-Hsync-VSync) image, while VGA needs an RGBaHV or RGBaC input (R-G-B analog-HSync-VSync, or in some cases R-G-B analog - CSync) so you need a digital-to-analog converter of some kind
   

• The VDC outputs its signals at 5V (TTL levels) on all pins, while VGA works with 5V HSync/VSync and 0.7V signals for each of the primary colors, so you also need to have a level-shifter of some kind
  
• the VDC outputs its signals at 15.625 kHz HSync, whereas most modern monitors won't even sniff at a signal that's not at 31.25 - I just checked and your monitor needs a minimum scan rate of 30 kHz, so you need either a VGA scan converter, or you need to ditch VGA entirely.
  
  The first two things can be handled in one go - take a look at the C128 RGBI to VGA Ultimate. There aren't many components to it and it's relatively easy to understand:
  
  
• the diode ladder (six of them) around the middle of the image acts like a rudimentary ADC (Analog-to-Digital Converter) for each colour channel:
  
  • if the input colour pin for a pixel is low, the output colour is low (close to 0 V) - it ignores the intensity pin
    
  • if the input colour pin for a pixel is high, but the intensity pin is low, the output colour gets to halfway the maximum voltage (about 0.35 V) - it's a regular-intensity colour pixel
    
  • if the input colour pin for a pixel is high and the intensity pin is high, the output colour is set to the full voltage (0.7 V) - it's a high-intensity (bright) colour pixel
    
• the 2 kΩ trimpots near the diode ladder can help fine-tune the colour levels
  
• the bottom glue logic chips (7486, TTL XOR logic gates) combine the positive-level (a value of "high" is active) HSync and VSync into a negative-level ("low" is active) CSync (composite sync) that VGA can work with
  
  • some converters need positive sync, some need negative - best to build them in at first and bypass them later if they're not necessary
    
• the big 74LS138 chip performs a special "brown correction"
  
  • normally, Commodore 80-column and CGA monitors would make the colour palette a bit more versatile
    
  • any "dark yellow" (R-G-B-I 1-1-0-0) pixel would be corrected by halving the analog level of "green" by dropping the voltage through an extra diode
    
    At the output of that, you have a fairly standard RGBa VGA-like signal at a low (15.625 kHz) scan rate.
    
    To handle point 3. from my list above you need a frequency doubler - if you want to just be done with it, get a GBS8200 board and a good power-supply for it, plug your circuit's RGBa output into it and get a nice, clean VGA signal out of the other side. If you want to DIY it, read how an AD724 RGBa-to-S-Video chip works, make a mini board for that, then finally get an S-Video to HDMI converter which will give you an even cleaner HDMI out.
    
    EDIT: Almost forgot. Since the C128 has dual video outputs, you might also want to make an A/V to S-Video cable. If you go the full DIY route, you'll now have two S-Video outputs, so if you also get a cheap S-Video switchbox with two inputs and one output into an S-Video to HDMI converter, you can swap between 40/80 modes at the push of a button.
    
    EDIT EDIT: There's actually a circuit board that does all that and gives you a switch to flip the outputs through a single S-Video made by Pyrofer and Appy Paul, but they haven't made one in a while, we're still waiting for them to continue production.

Edit: make sure you check if it supports PAL or NTSC and get a converter than can do the right one or both.

You'll have to buy a converter. Something that takes composite in and outputs HDMI.

Something like this: https://www.amazon.com/GANA-Composite-Converter-Adapter-Supporting/dp/B01L8GG6PW

If I remember correctly Commodore put out something like S-Video component as well. I'm not sure if there's a direct way to convert that. If there were, it would be better becuase the HW wouldn't need a notch filter.

You could also use a capture device on a PC and display it in a window on your PC.

One of these should work, although the ratings are kind of low.

https://www.amazon.com/s?k=composite+video+capture+for+pc&ref=nb_sb_noss

Info | Details
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Amazon Product | The Adolescence Of P-1
>Amazon donates 0.5% of the price of your eligible AmazonSmile purchases to the charitable organization of your choice. By using the link above you get to support a chairty and help keep this bot running through affiliate programs all at zero cost to you.

If you dig Commodores, this is definitely worth your time. Based on the lost classic The Adolescence of P-1, itself worth a read and based in the IBM/360 world of the 1970s.

The film is about an AI loosed on timesharing systems which gains sentience. Made for Canadian TV.

Of particular interest to me is the scene where Gregory orders pizza (in 1983) via modem, as well as nuclear powerplant C&C systems running on Commodore 64s.

As far as joysticks go, you could get a USB retro one like THIS, or get an adapter and use any Commodore/Atari/Sega, 9-pin controller you want.

This could interest you
The Future Was Here: The Commodore Amiga (Platform Studies) https://www.amazon.com/dp/0262535696/ref=cm_sw_r_cp_api_i_OMl0CbANX136J

It does not talk only about graphics. But it’s quiet technical.

But there are also lots of web forums around the amiga.

I just tested and was able to add it to cart, but if it doesn't work, it's also on Amazon for the same price, however you won't get the 20% off with Google Express.

I use one of these https://www.amazon.com/Coaxial-Female-Adapter-not-machine-specific/dp/B0028MXOF6/ref=sr_1_3?ie=UTF8&qid=1506569074&sr=8-3&keywords=Coax+connector+old+console To hook my c64 to my 60” Sony. Just remember to tune in channel 3 or 4 on your TV.

https://www.amazon.com/gp/product/B07H5TF6X2/