I used a similar circuit on a set top box and the 0.25W resistor caught on fire when C1 failed.
This was tested in the safety lab where I worked
Just a question here... Why C1 failed ? Is it the die-electric become a conductor ? A cap is just two metal plate seperated by a die-electric-isolation... And the cap is rated WAY OVER Main Voltage peak... <-- I assumed... So how the ... a cap fail ? Bad Die-Electric Isolator ? Manufacturer lie on the rated voltage ?