It is called Blossom Drop, a condition shared by most all
blooming/fruiting plants, and primarily tied to hot air temps and high
humidity but can also be caused by excess nitrogen levels. There is a
FAQ here about it.

http://faq.gardenweb.com/discussions/2765999/why-are-the-blooms-on-my-tomato-plant-dying-and-falling-off

Looks
like you might also have some incomplete pollination issues (sort of
goes hand-in-hand when the plant is stressed) so the fruit gets aborted.

Dave

thanks for the info. that was my assumption. it's been getting real hot and staying hot overnight. also getting very humid here by the beach. will they produce fruit once it cools down as long as I keep it healthy until than?

Yes they will. All we can do it keep them going and healthy until the weather breaks. If we are lucky we'll get a few intermittent periods where they can set fruit between no and then.

Dave

Different types of peppers react to high or low temperatures differently. I have very little problem with fruit set on my sweet bananas, but unless I grow a very early type that actually starts setting before real hot weather, I have problems get fruit on my bell pepper plants (so I don't grow them anymore - they and I just don't seem to get along real well). It is also my impression that once you get some fruit set, more happens easier than the first fruits did.