mains led indicator
Either the resistor or cap in series with the LED will work. The resistor will be cheaper, but will run hot. I would use a 1n4007 diode accross the LED (opposite polarity to LED). The 1n4007 has a higher voltage rating than the 1n4004 and is about the same price.
Use hi-brite or ultra-hi-brite LED, because a lower current is needed. 10 mA will be more than enough. The forward voltage of an LED is typically 2V depending on the color, but at 230V supply, this is irrelavant.
As mentioned above, use a 150N cap or 22K resistor (5W). You could probably get away with a 47K resistor or 68N cap if you use an ultra-hi-brite LED. Remember the cap's voltage ratings are usually DC, unless specified. Use 250V AC or 600V DC rating.