I've been making hot sauce from my peppers for a couple years now. You will find tons of recipes on the internet (from very simple to very complex). After you read a bunch and try a few you will get a nack for tweeking them to your own taste (I always add garlic).
You will find different recipes have different prep methods, but i always use the same prep regardless of the recipe.
1. put all ingreidients in blender (I chop a little first, but not much)
2. puree untill smooth
3. Pour into stainless steel pot and simmer for 5-10 minutes.
4. Pour into sterilized jars or hot sauce bottles.
5. will keep for 6-9 months refrigerated
Using fresh peppers will give you a pretty good sauce, but if you want commercial quality you have to use "pepper mash" (basically aged fermented peppers). making pepper mash is enough to discourage even the most devoted chili fanatic. Luckily there is a company that sells it for a very reasonable price (they also sell the bottles)http://www.leeners.com/hotsauce.html . I use the mash to substitute about 1/3 of the peppers in the recipe and the sauce equal to the ones you can buy in the store IMO. It gives it a more complex flavor than you get with staight peppers
Ohh I almost forgot, look around and you can find tabasco pepper transplants now. they make very good sauce (good without mash, awesome with a little jelapeno mash). The tabasos are the last peppers to mature and grow into huge (for peppers) bushy plants.