This is delicious...we went to the farmer's market on Saturday (because all my boyf had in the apartment to eat were eggs, milk, and ramen noodles!), and I got a ton of peaches and tried this. The recipe is from the current (August) edition of _Taste of Home_.
Chunky Peach Spread
7 medium peaches (2 to 2 1/2 pounds) 1/3 cup sugar 1 tablespoon lemon juice 1 enveloped unflavored gelatin 1/4 cup cold water
Drop peaches in boiling water for 1 minute or until peel has softened. Immediately dip fruit in ice water. Peel and chop peaches. In a large saucepan, combine the peaches, sugar, and lemon juice. Bring to a boil. Mash peaches. Reduce heat; simmer, uncovered, for 5 minutes (or longer if the mixture seems really juicy).
Meanwhile, in a small bowl, sprinkle gelatin over cold water; let stand for 2 minutes. Remove peach mixture from the heat; stir in gelatin mixture until dissolved. Cool for 10 minutes. Pour into jars. Refrigerate for up to 3 weeks. Yield: about 3 1/2 cups (I think my peaches were big, because I got closer to 4 1/2 cups).