It's what you think it is. I had the same thing happen.

http://forums.gardenweb.com/discussions/2087635/roots-and-root-nodules

http://forums.gardenweb.com/discussions/3853230/burying-pepper-seedlings?n=22

And just a couple weeks ago you were saying that peppers don't root readily along their stems. Funny how things work, isn't it? :)

Rodney

ive been growing peppers for about 10 years and first time i have ever seen this happen.. has to be some abnormality with this variety (costa rican). they are the only plants doing it. i have 10 other pepper types, in the same environment growing right next to the costa rican and not a single bump on their stem. all 8 of the costa rican plants have the white bumps. still stand correct that peppers do not root easily. feel free to root a cutting, or bury your pepper plant see how long it takes, without rooting hormone of course..

happend to me a couple times that I recall. If I saw it now, I wouldn't think twice about it. I could have it on my plants right now and woun't even know it because, to me, it is completely natural and not a threat.

That's a nice healthy looking plant. :)