Substitute for ground picnic ham.

The term "ground red pepper" is ambiguous in English. Things sold under that name in the US have a wide range of heats, and likely are made from multiple varieties of peppers, though I'd say they're more commonly hot things like cayenne, or other varieties with somewhat less heat.

That said, don't worry about it too much in these cases. Anything from mild paprika to cayenne would likely fit within what the authors meant, and you're not going to harm a recipe by increasing or decreasing the heat, or by using a chile powder with a slightly different flavor. Just use something (or a blend) that provides the heat level you want, and you'll be fine.

The original recipe calls for a total of 2 lbs of ground meat, 1/2 beef and 1/2 veal.

I would suggest a close approximation to the effect can be had by using either (in decreasing order of preference):

• 50% ground pork, 50% ground beef -- Some of the mild flavor of veal, with tenderness and flavor from the pork
• 100% ground beef -- It won't be as tender or as subtle, but still will be good

I would avoid trying to use as part of your substitution mixture:

• Ground lamb, goat, ox, and so on -- flavor is too strong
• Ground chicken or turkey -- these are extremely low in fat, likely to toughen your overall mixture, and likely to make it taste more poultryesque

Personally, I would also switch from whole eggs to just the yolks, which will bring the binding and tenderizing qualities of the yolk, without the slightly rubber-like texture of albumin based white, to more closely approximate the qualities the veal would have brought to the dish.