No, you put the led between the 1k ohm resistor and the capacitor. One thing to know about all diodes, including LEDs is that they only pass current one direction- great for dc, but ac presents a problem and will fry them. You may also need a reverse path diode since you are using ac, not dc. But that depends if your led is multidirectional ( by which I mean if your switch or whatever you have is a combination of opposite direction LEDs or just a single led that passes current only one direction.). I have some switches that are blue and green that employ using two leds of opposite direction. They only needed the capacitor and resistor to be installed. I HAD some white led switches that only had a single led in them, they got fried because i needed an auxiliary diode to allow the reverse ac a safe path, but the blue and green switches had two LEDs in reverse direction, so didn't need the correcting diode. Good luck. I'll try to get a picture....