I'm on my third week with the regimen, and my face is peeling..is this normal? Should I continue using the BP even though it's peeling? Will it continue peeling through my skin if I keep using it? Because I understand that new skin needs time to heal. Please help.

The peeling is most probably from the dryness caused by the BP. Stick with it though! Just don't skimp on the moisturizer and in a couple more weeks your skin should get used to the BP makes your skin less dry.