I have taken into account what was posted here and modified my design accordingly. Please see the v3 schematic
I can only get 2.4V Zeners at the moment. Should be close enough? The max rating of the LED is 3V and the continuous is 2V.
I am getting approx 7mA current draw through the whole circuit. (ammeter in series with Live wire).
I am also getting approx 7mA at the LED. (ammeter in series with LED)
By my calculations 7mA at 253V is 1.771W so I will need a 100Ω 2W metal film fusible resistor?
2W seems excessive, the fusible resistors in the commercial lights I have are the small 0.25W metal film resistors? Am I calculating something wrong here?
I attach the schematic of a cap-drop supply I designed 15 years ago. It's laid out for a bit higher current than your LED driver, and has been operating in many devices with 100% reliability.
Ignore the lower and the right parts of the drawing, they're irrelevant to your application.
I went back over my design notes:
R1: 470 kohm, Vishay VR37 (cap bleed resistor)
R2: 330 ohms, Vitrohm BW234, (wirewound startup current limit resistor)
D1...D4: 1N4007
Z1: 1N592xB, ONSemiconductor (voltage depending on number of LEDs, for a single LED I suggest 5.6 V)
R3: any 0.3 W resistor, value dependent on Z1 and desired LED current and color
C1: 470 nF 305 VAC X2 (this is chosen for 35 mA IIRC, you need a lower value)
C2: 220 uF, 16V
This lists the critical parts. You have to consider the following:
1: at turn on, the only thing limiting inrush current at peak AC voltage is R2, and it will have to withstand >1 A peak current.
2: the same is true for for C2 and Z1. IIRC, that explains the relatively high value of C2 and the high power rating of Z1.
3: the bleed resistor avoids C1 discharging through a person touching the mains plug prongs after unplugging.
R1 and R2 are pure loss, of course, and their values need to be weighted. If you only need 7 mA, R2 can be increased, with lower demands on C2 and Z1 making them smaller and cheaper.
I'm not too proud of the design, I dislike cap-drop solutions. It was only chosen because it was the simplest and cheapest, not due to performance.
Hope this helps, as I said, it's a tried-and-tested, reliable design.