Wear gloves to seed and chop peppers!
Place hot peppers, onion, and vinegar in food processor and process until very fine. Pour sugar in heavy, non-aluminum pan and stir in pepper mixture. Bring to boil, and boil for 1 minute. Stir in pectin, let come to rolling boil. Remove from heat, skim off foam. Ladle into sterilized jars and seal per USDA approved methods. Turn jars upside down and back again, 5 minutes each way, until jelly is cool and set - this keeps peppers mixed. Makes about 4 pints.