Heat oven to 350°F. In food processor bowl with metal blade, combine all pesto ingredients; process until smooth.
Unroll lamb, cut side up, onto work surface. Spread pesto over lamb. Place roasted peppers over pesto. Roll up lamb. Tie with kitchen string or secure edges with metal skewers. Rub surface with lemon-pepper seasoning. Place on rack in shallow roasting pan.
Bake at 350°F. for 60 to 75 minutes or until meat thermometer inserted in center registers 145°F. for medium-rare. Remove string from lamb; cut into slices.