In a saucepan, mix water and sugar; stir to dissolve sugar. Bring to boil. Add cranberries, Jalapeno peppers, lemon juice, and Lemon/Orange zest and return to boil. Reduce heat and simmer gently for 10 minutes, stirring occasionally. Add sherry and stir well. Remove from heat and let cool completely at room temperature.
Refrigerate in a glass container with cover. Serve with turkey or chicken.