Any type of "amendment" (that which you incorporate INTO the soil)should not have anything that's recognizable...In other words, be FULLY composted.

So, I'd either sift out the wood chips or use it strictly as a mulch(that which gets laid ON TOP of the soil).

Feel free to till it in AFTER the growing season though.

Kevin

Never use soil with wood chips in it for peppers. Pine or fir bark, yes, any kind of wood chips (pulp), no.

I wouldn't mix partially decomposed material in the soil as it will tie up nitrogen. I use freshly chipped wood/brush for mulch with no side effects. Lasts longer than the commercial crap...