Hai,
There is static inner class(top-level nested class). But there is no static inner interface.
Basically the interface methods have to be overridden by some implementing class. If u have an inner static interface, it's like declaring it both abstract and static (which is not possible).
Also static methods cannot be overridden. (Though it can be redefined in the subclass).
If you take Dan's chapter-wise
test on inner classes you can understand it well through the explanation provided by him. I think there is a link to his site in javaranch mock exam list.
Hope this helps.
Kalai