AC to DC conversion A0 serail read

One more thing...

Add a resistor from the analog input to ground. Almost any resistor will do. Without a resistor the input can "float up" and the diodes prevent the (lower) input voltage from "pulling down" the input.

Did you measure the voltage with your meter with the capacitor in the circuit? The smoothed DC should read accurately on both the meter and the Arduino, and the resistance of the meter should prevent "floating".