The vibrational density of states associated with the in-plane dynamic
s of intercalants in graphite intercalation compounds obtained from in
elastic-neutron-scattering (INS) measurements shows a characteristic t
wo-peak structure. Using molecular-dynamics simulations of screened Co
ulomb systems on a strongly corrugated substrate we show that the high
-frequency peak is due to two-phonon response, thus providing a correc
t understanding of the INS experiments. The temperature and q dependen
ce of the incoherent dynamic structure factor confirms our picture.