Finely chop peppers in processor or run through grinder. Strain, pressing lightly. Measure 2 full cups and 1/4 cup pepper juice. Discard remaining juice. Combine ground peppers, pepper juice, sugar and vinegar in 3-4 quart saucepan. Bring to boil, stirring frequently. Remove from heat and let stand 15 minutes. Reheat to boil, stirring frequently. Add lemon juice and return to boil for 1 minute, stirring. Add pectin and let boil 3 minutes, skimming off foam as it accumulates. Pour into jars. Invert jars for 10 minutes. Upright jars and store in a cool place. Serving suggestions: Great over 4 ounces of cream cheese with unsalted crackers or on a grilled bagel.
Makes 7 half pints.