In a large saucepan, dice and brown the italian sausage with the * Old Bay Seasoning, then pour off the drippings. Dana prefers to remove the skin from the sausage to keep it from being "tough". Add onion, green pepper, chili powder, tomato sauce, tomato paste, garlic powder and water. Cook over low heat for 30 minutes stirring occasionally. Add kidney beans, jalepeno pepper and texas pete (to taste). Simmer for another 30 minutes. Just before serving do a "once around the pot" with a good mexican bottle of beer to make it feel at home. Dana tells me that the only way to enjoy her chili is with a mexican beer, tortilla chips and a little shredded extra sharp cheddar on top.