chamelec, thanks for that, he has done something very similar to what I'm planning. I would use a transistor and a safer controlled DC voltage for the LED however in my circumstance the led will be potted in with the transducer and the only power going to the transducer is the transducers power so my issue is finding the right resistor or something to protect the LED while using the induced current from feeding the transducer wire through the inductor.
It works, it was running just two leds on a 100uH inductor with the transducer wire only going through the inductor once and I ran that for about 8 hours or something like that without a resistor on a 20W transducer.
I am just concerned that without a limiting resistor on the led or maybe a cap like in that example chamelec just gave I will end up with the led failing after a month of operation or something like that and that will providing a false failed reading when really the transducer is still going fine...
The ratio of the Current Transformer I have chosen is 50:1 so I just need to figure out what the calculation is to get the value of the resistor to put in place? Anyone able to help out with that? Google isn't really giving me much love. Is everything just calculated at a ratio of 50:1?