Place cereal in resealable food-storage plastic bag; seal bag and finely crush with rolling pin or meat mallet (or finely crush in food processor).
In large bowl, mix crushed cereal, ground beef, 1/4 cup cheese, the Italian seasoning, garlic powder and 1/4 cup of the tomato sauce until well blended. Shape into 16 (1 1/2-inch) meatballs.
Spray 12-inch skillet with cooking spray. Cook meatballs in skillet over medium heat 8 to 10 minutes, turning occasionally, until browned. Drain if necessary.
Add remaining tomato sauce, the tomatoes and red pepper to meatballs; turn meatballs to coat. Cover; cook over medium-low heat 15 to 20 minutes, stirring sauce and turning meatballs occasionally, until meatballs are thoroughly cooked and no longer pink in center.
Meanwhile, cook and drain pasta as directed on package. Serve meatballs over pasta. Top each serving with additional Parmesan cheese and parsley.