"We have young players here that you feel can do it and the best performances this season have probably been against the Premiership clubs," he says.
"But consistency would have to be a lot greater, and we would have to play a lot better.
"To do that we would obviously be looking to bring players in - we would need a bigger, stronger squad and any time you bring players in you hope they are better than the ones you have.
"Ipswich ended up fifth in the Premiership one year after people gave them no chance, so there are opportunities there.
"Once you are in there you are in to win it - we want to get in there and do as well as we possibly can.
"People say about consolidating and if we get the opportunity to go up we intend to stay there.
"It is a fantastic challenge to pit your wits against the best players - and we wouldn't be going there wide-eyed and starry faced.
"We would be going to do as well as we possibly can; if you are worth your salt as a coach and player you want to be in the best league.
"Palace and ourselves are one game away from achieving that and we have to be as prepared as possible but we could be talking about something completely different if we don't do the business in Cardiff."
Looking at Palace, he adds:
"The forward line is good; Andy Johnson has scored an incredible amount of goals, Dougie Freedman has scored some important ones, Shipperley has been around the block, and they have a good team.
"They work hard and the harder you work the luckier you become, so fair play to them."
Julian Gray is suspended for Palace but Peter warns:
"They still have players that can come in and they know they can cover it - it will change their team but it will not weaken them."
He admits to being pestered for tickets this week, and adds:
"I have so many friends now it is unbelievable!
"But I would rather have it this way than be sitting with my feet up - I am delighted we have got this fantastic opportunity.
"I have had the feeling of winning at the Millennium stadium, and it is a good one, but it is only a great occasion if you win."
Peter is impressed with David Lewis, the Australian fan who bought the TV rights to the game so he could watch it, and says:
"I have a few friends who are Celtic supporters over there; they are very similar clubs in many respects and the fans want to be entertained and play good football - and win.
"It is a great idea and good luck to him."
Meanwhile, Rob Lee declares he will play on next season - albeit at another club.
"I intended to play all this season and retire, but having played the first 14 games or so I haven't played much since, so I will play on."
* You can hear a full preview of the game from Peter on Real Audio.