Sterilize 8 half pint jars and lids (or 16 - 4 oz. jars). Keep warm until ready to use.
Set up canning pot with rack and enough water to cover jars by 2 inches. Heat water in canning pot to a simmer so it will be ready to boil when you are ready to seal jars.
In an 8 qt pot, combine peaches, peppers, lemon juice and vinegar on high heat. Stir to combine. Stir in pectin and bring to a full boil (rolling boil).
While jam is coming up to a boil, remove jars from water and set them on a kitchen towel to drain and dry out.
When mixture has come up to a boil, add sugar all at once, and stir constantly for ONE minute at a rolling boil. (If your jam looks REALLY runny, reduce heat to medium high and continue cooking for 5 minutes or so until it has thickened slightly)
Remove from heat.
Place a funnel into a canning jar and ladle hot jam into jars. Wipe rims and threads with a clean, wet cloth to clean any drips. Cover with lids and bands, tightening bands to "fingertip tight" *see note below*
Place jars in rack and lower into water bath. Bring water to a boil (it doesn't have to be a full, rolling boil, but it does need to be boiling). Process jars for 10 minutes to seal.
Remove jars from water bath, place on kitchen towel to cool. You should hear them "ping" in a few minutes. Check seals by pressing on the middle of the lid.
*If the lid pops back up after being pressed, the jar isn't sealed and must be refrigerated. If it doesn't, it is properly sealed!