Combine peppers, sugar, vinegar, and lime juice in a flat-bottomed kettle; stir well. Bring to a rolling boil, and boil 1 minute, stirring constantly. Add liquid fruit pectin, and return to a rolling boil. Boil 1 minute, stirring constantly to prevent sticking. Remove from heat, and skim off foam with a metal spoon. Add food coloring, 1 drop at a time, for desired color.
Quickly ladle jelly into hot sterilized jars, leaving 1/4-inch headspace. Cover at once with metal lids, and screw bands tight. Process jelly in boiling water bath 5 minutes.
Note: Turn jars frequently during cooling to distribute peppers evenly throughout jelly.