fungus:
retrolefty:
Your basic theory is correct as best as I can tell. However the biggest concern is safety if you insist on direct connection the the AC hot and neutral lines. Especially when you require (or want) to pwm modulate the leds via an arduino analogWrite output pin, because that requires that you have a 'ground' connection wired from a arduino ground pin and the neutral side of the AC power bus.No... his 'ground' pin would go to the rectifier, not the mains.
And might I ask where the rectifier gets it's 'ground' reference from, get a clue. 
Direct connection to both hot and neutral is being proposed and required. It will work. It's just not the safest practice and that was my point.
Lefty