Place the peppers in a large bowl and pour over enough boiling water to cover. Let sit for 10 minutes.
Mix together the sugar, vinegar, salt and water. Stir until sugar is dissolved.
Blend together the cabbage and chopped pepper. Pour over 1 cup of the sugar mixture.
Drain the peppers and fill with the cabbage mixture.
Place in a large container (like a crock) and pour over the remaining mixture. Cover and chill. Allow to sit for several days