In a saucepan, combine the first eight ingredients; bring to a boil. Reduce heat; simmer, uncovered, for 5 minutes. Cut each potato into 16 wedges. Divide potatoes and peppers between two pieces of heavy-duty foil (about 18 in. squares). Top each with 1/2 cup sauce; set remaining sauce aside. seal foil tightly. Grill vegetable packets and lamb chops, covered, over medium-hot heat for 5 minutes. Turn chops; baste with remaining sauce. Grill 5 minutes longer. Turn and baste again. Grill for 2 minutes or until a meat reaches desired doneness (for medium-rare, a thermometer should read 135°; medium, 140°; medium-well, 145°). Serve with vegetables.