How long were you using the Benzoyl Peroxide? I use the 2.5%, and it took me a good month before my skin got used to it. As far as results go, I didn't start seeing results until I "prepped" my face first with 1% salicylic acid astringent (it took about a week for my face to get used to that too).. But now that i've been on the two of them, my skin has cleared significantly, and I don't get the redness or peeling anymore.
Good luck whatever you do.. and keep us posted on your progress!