Dried, canned, pickled, or frozen, there are umpteen recipes to be found on google. Probably the lowest tech is to pick them with a stem attached, tie the stems together with twine in a long string, and hang the strings up in a warm, dry, shady spot to dry. If the humidity is too high, set the oven on "warm", put the peppers on wire racks, and dry them there. Seal them up in bags once they are lukewarm to the touch. An envelope of powdered milk in the bags will help keep them dry. They can last a couple of years that way, if you keep them out of the light. Note that drying peppers drastically reduces their vitamin C content, but not their antioxidants.

I bag my chillies whole and pop them in the freezer ,take 1 or 2 out when I need them. I also find its better to grate them when they are frozen.
hope this helps

Have you thought about buying the Ezidri food dehydrator ? Great for drying and preserving anything from your garden,the surplus runner beans and you can 'Sun Dry ' those toms for winter use.
The freezing is fantastic,but the freezer does get full up and then those gluts of things get given away !