> you can use anything rated for 125VDC
The peak voltage of a "120V AC" sine-wave is 170V. A part that broke-down at 125V would die on the first half-cycle.
Even "200V" caps die a lot in that application. Most audio caps take a steady DC which changes very little, from fairly saggy sources. Here the voltage is *forced* 0V to 170V 120 times a second. Significant current flows.
There's also voltage-spikes on power lines, which are much smaller after the PT and the filter caps.
And when the cap fails, it may go SHORT. This may be deadly.
Line-side caps *MUST* be rated for the purpose. These are now available for decreasing digital leakage from digital gear.
And in this day when 3-pin outlets are common, it is MUCH BETTER to get your Safety (and audio) ground from the Third Pin, not from some capacitor.
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> install the little transformer
Yes. Manipulate the signal, NOT the power and safety grounding.
If you still have a Radio Shack, if they still have car-sound parts, there is a can with two RCA plugs at both ends. Slit the label, pull it apart, and you have two medium-Z 1:1 transformers. If driven from low impedance (op-amp), the response is excellent; they will suck if driven from naked guitar pickup. I used them all the time to bridge ground-loops in recording setups.