Others have said it can be difficult to read the color of the litmus papers, I've never used it so can't say for sure. pH meters aren't that expensive.
Here's a couple links for some approved hot sauce and salsa recipes.
http://www.utahcountyonline.org/Dept/Exten/HomeEc/Salsa.asp
http://cru.cahe.wsu.edu/CEPublications/PNW0395/PNW0395.pdf
http://www.longmontmagazine.com/PDFs/SalsaRecipesCanning.pdf
And this one has some excellent links for canning and processing, and a self-guided instructional video.
http://extension.usu.edu/utah/htm/fcs/food-preservation-canning/
Google "extension service salsa recipe" for approved recipes that you can feel safe using.
The Ball canning page w/ recipes-
http://www.freshpreserving.com/pages/new_recipe_pages/215.php
As far as temperatures go, it's up to the process authority. My process authority said to heat the sauce to 180F, fill bottles, cap and invert. Others have said theirs is 180, and I belief the FDA regs suggest 190F. The process authority will review your recipe and ingredients and the process they suggest/dictate may vary depending on the ingredients used in the recipe. Use the 190F to be safe.
In order to sell sauces in Washington state, I have to send a sample of the product, packaged in the bottles it will be sold in, the complete recipe and detailed description of the whole process from start to finish of how the sauce is made, where the ingredients come from, etc. to a "Process Authority". A Process Authority is a person or business who is recognized and certified by the state of Washington and the FDA to be able to review processes and recipes, test the product for various things and make determinations and certifications as to the safety of that product. They not only test hot sauce and salsa, they are responsible for every type of food product...fresh pasta, beef jerky, chocolates, ice cream, fresh tofu, all types of sauces... any food product that is made in Washington state for resale.
Regulations vary from state to state, but in Washington, for me to sell retail at farmers markets and festivals, just within our county, I have to get licensed through the local health department and to wholesale the product, I have to get licensed through the State of Washington. Contact your local health department. They'll get you started.
And spend LOTS of time reading in the "hot sauce making" forum and the "Bottling, Packaging,..." forum.
Hope this helps~
SL