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Using dried chilli pods

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I'd suppose the long-term shelf stability would be while they're dry. Then when you want to make a quick batch of sauce, you could wake a few pods and process them. But once they're wet, they won't last as long just sitting.
 
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I use dried peppers as well as powders in some of my products. Most of said products are vinegar heavy, which produces a "pickling" effect as well as re-hydration for the dried ingredients. In my estimation it is "shelf stable" -  but here, in legality,  the Govt. ententies only afford only a "three year" shelf date to be attached. I have never attempted a product using "only" dried pods as primary ingredient and don't know how it would affect "shelf stability" as viewed by governing authorities.
 
I will say that from my "own" testing that my creations are certainly stable well beyond five years. 
 
In re-read of your post, I don't think I answered anything, but it's all I can offer.
 
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Yup you can make sauce from dried pods. Ever had a chipotle hot sauce? Well that's form a dried pod of course (or from a rehydrated/once dried pod because all chipotles are dried at one point). ;)
 
LOTS of Mexican sauces start with dried pods. Ancho, guajillo...
 
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There's a sticky in this thread about making hot sauce, check it out. Also "I thought rehydration would help..." well it WILL be rehydrated no matter what, it can't stay dry. ;)
 
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