I have been told that to reduce the heat in Mexican dishes I should remove the seeds of the chiles. Is this correct?
No! The notion that a significant amount of heat is contained in the seeds of chiles is one of the most frequently repeated culinary myths (and often by people who should know better). The heat in chiles is caused by a substance called capsaicin. It is found in all parts of the chile, but least of all (approximately 5% by some estimates) in the seeds. One possible reason for the misunderstanding is that the greatest amount of capsaicin is found in the placenta, or veins of the chile, which usually lie close to the seeds. I do however, usually remove the seeds unless they are part of the recipe (such as with some of the moles and salsas) because they have a bitter taste and unpleasant texture.