A nice example or Rifa metallised paper capacitor plague (forum search for Rifa will give you the idea
). Luckily it doesn't appear to have done much damage, you might want to re-terminate the mains lead though.
In this case, as you say, it is an RC snubber. The capacitor needs to be Class-X rated for safety. You can purchase suitable encapsulated RC snubber cheaply from most electronics distributors. Most use Polypropylene capacitors.