Repl;y to A Walker: You should have taken a look at Toby Buckland's tip on drying chillies in the September issue of Gardeners' World Magazine (page 15).
Toby simply strings-up the chillies on thread, hanging them by their stalk, and keeping in the greenhouse or a warm room for them to dry in the air. You could probably just lay them on a warm windowsill to dry instead.
Once dry, store in airtight jars – either whole or broken into flakes.
I'm also told chillies can be frozen, and then used directly in curries or other dishes as you cook.