Ooh yeah... when i was visiting New Mexico several years ago, i found a PEANUT BUTTER with chilli in it, and it was delish!!
Stacey, you dont need to worry about fumes from chillies unless you are using habanero / Scotch Bonnet. Those do have 'fumes', but it only burns for a minute, so im not bothered about the fumes. Just wash your hands well after handling any sort of chilli, and it should be ok to touch your eyes, nose, whatever. If using habanero or Scotch Bonnet, i'd say wash your hands, then wash them again if you're worried.