The Instructables website has a good tutorial on how to remove the "burn" from a chili pepper - note that de-seeding is only the beginning. Their method uses alcohol to dissolve the capsaicin - the enzyme that makes chilis spicy. You'll need anything that's 80 proof or above - vodka or tequila are good choices.
First, cut out the seeds. Next, pour olive oil on the exposed flesh, rub it in, then rinse under water. Pour the booze over the pepper, rub it in, then rinse again and allow to dry. Ultra-spicy peppers will need to soak in the alcohol for up to three hours.
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