How to remove the bitter taste from green bell pepper?
Green peppers are green because they are unripe.  Unripe fruits and vegetables are naturally more bitter and less sweet than ripe ones.  By far the easiest/laziest path is to just use a red pepper.  It's essentially the same food, just ripe.

Sugar won't really do anything to the bitterness other than mask it. Salt will.  Khymos has written that in parts of Asia, unripe fruit is commonly eaten with salt, salty spices, or soy sauce.  These are all excellent options for peppers, as they reduce the bitterness and enhance the taste.

Finally, cook at low heat if possible.  Pan-fried peppers tend to be a fair shake bitterer than slow-grilled or oven-roasted peppers.

(P.S. Removing the skin obviously works as well - I personally prefer them unskinned, but if you want to skin them, have a look at this Chow video on it - it's simple to do, you just char the outside and shake it in a plastic bag.)

Also, the interior white part and skin (not the big obvious part, but the sort of interior skin of it) are rather bitter also. Remove it be sliding your knife carefully and parallel to your cutting board slowly and shallowly.