The WSJ has up a great article describing the current state of affairs in the quest for the world's hottest pepper:
The undisputed king of the hot sauce world though is Blair Lazar, a New Jersey entrepreneur who achieved a Guinness record of 16 million Scovillesâ€”the scientific maximum. He required customers to sign a waiver before buying his "Blair's 16 Million Reserve." It consists of individual crystals of pure capsaicin produced in a laboratory.
Mr. Lazar started his business in 1989 when he was a bartender trying to clear out late-night stragglers. If they could eat wings doused with his original Death Sauce, they could stay. None could. But he says appreciation for spicy foods has grown immensely.