Heat oven to 400°F. In large bowl, combine all meatball ingredients; mix well. Shape mixture into 1 1/4-inch meatballs. Place in ungreased 15x10x1-inch baking pan.
Bake 15 to 20 minutes or until thoroughly cooked.
Meanwhile, in large saucepan, combine all sauce ingredients; mix well. Cook over low heat until mixture is bubbly, stirring frequently. Add cooked meatballs to sauce; stir gently to coat.