Slice each block of cheddar cheese into twenty 1/4-in. slices. Cut each block of cream cheese into 18 slices. Create four 6-in.-long blocks of stacked cheeses, sandwiching 9 cream cheese slices between 10 cheddar slices for each stack. Place in a 13x9-in. dish.
In a small bowl, combine peppers, oil, vinegars, onions, herbs, sugar, garlic, salt and pepper; pour over cheese stacks.
Cover; refrigerate overnight, turning cheese blocks once. Drain excess marinade. Serve cheese slices with crackers or toasted bread.