Transformerless Power Supply - AC-110v to DC 5v 1A (60hz)

[dhouston]

1) This circuit is going to be inside a closed plastic box with minor ventilation 4"x3"x2" deep.

All the more reason to use an external supply.

2) Price, I can't find a good price for those power supplies.

http://arduino-direct.com/sunshop/index.php?l=product_detail&p=123