Toss together peaches and sugar in a small bowl. Cover mixture, and chill 10 minutes.
Process peach mixture and juices in a blender until smooth. Pour into 14 (1/4-cup) plastic pop molds. Insert plastic pop sticks; freeze at least 4 hours.
*Frozen peaches, partially thawed, may be substituted.
Peach Slush: Add 3 cups ice cubes to blender with peach mixture and juices. Process until ice is finely ground. Serve immediately, or freeze for later use.