Last time we did it on an old pan we were gonna throw out. It can honestly be any kind of scrap metal. We took two small pieces of wood, placed the pan on top (this was so we didn't burn the linoleum with the heat of the pan), put the serrano peppers in the pan, and lit them. Since they are dry, they catch fire pretty easily, but burn slowly, so it lasts.
We were still in the house, we simply did one or two rooms at a time (it's not a terribly big house). The smell will make your eyes water, and you'll feel the back of your throat burning, and I expect a small amount of CO is released, but even one room over it wasn't too noticeable. Bugs hate it though. If I remember correctly, it was a bed bug problem (gross!). After that day, no more bed bugs (and they are notoriously hard to get rid of).
We let them burn out by themselves, which took about 20 minutes or so, and we let the smoke permeate the room, fill every nook and cranny for about an hour and a half. The smoke was pretty thick, too. After an hour and a half, we just opened all the doors and windows to that room and let it air out for another hour or so, and by then the pepper smell was completely gone.
We only had to do the pepper burning once. I expect if bugs are a seasonal thing in Texas, then maybe once a year.