I'm just confused about the supply that I should use in driving my arduino. Is it okay to use a 3.7V with a 1000mAh to supply it?
I will be using a Lilypad Arduino.
Your replies would be a big help to me.
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The Technical Specs say that 2.7-5.5V DC is ok so you should be good at 3.7V DC.
Remember though: Power consumption = Current x Voltage
So check that your power supply has enough current available. The current amount used will depend on how many pins you are using. The maximum each digital pin may use is 40mA. 1A (1000mA) will be plenty but mAh (milliampere hours) sounds like a battery specification.
Also, a word from the wise is that some cheap power supplies can be bad (little spikes and dips). If you are having trouble with strange issues it can be a good idea to check the power is ok.