Originally Posted by plowin-fire
Can you let them air dry? I may know someone with a dehydrator i could use.
Caseydog already mentioned the humidity factor and he is correct. I air dried one season when I had a ton of peppers and some of them got mold growing in the middle. They looked fine on the outside (dried), but when you cut them open there was some white mold, which is usually harmless, but why bother when you have a ton of ones that dried fine. I did this about three years ago and still have a ton of dried peppers. I just don't know what to do with all the habeneros. You look like you are about to have the same problem.
One aside, if no one has mentioned this yet, you should smoke some of those peppers before you use or dry them. Totally changes the flavor.
Also, if you are going to make sauce, a food mill is your best friend for grinding all the peppers in batches without having to remove all the skin, seeds, stems, pith, etc. Look for a used one (cheap at a garage sale or goodwill), you won't use it all that often, but when you need it it's the right tool for the job. The flesh and juice goes through the bottom as the mill presses the peppers and the rest is left behind in the top to be thrown out.