My recipes I pretty much wing it, but heres what I did.
Seed/stem peppers, being VERY careful. Some people use gloves. Put in a pan with about 1/2cup vinegar, 1/2 cup water, 1/2 teaspoon salt.
Cook covered on low for about 30 min. Be VERY carefull with the steam. It'll burn your eyes/lungs. Put into a blender until pureed. Be VERY careful here too.
Put into a sauce bottle
http://www.specialtybottle.com/index.asp?PageAction=Custom&ID=9
and yer dun!
Your blender will need to be cleaned very well if you want to use it again, the little rubber gasket will soak up the heat, and you'll taste it in your shakes. Trust me on that one.
Oh yeah, and it'll keep for pretty much ever. I keep mine in the fridge, and hasn't gone bad in over a year.