Mix all ingredients for meatballs. Form mixture into 1-inch meatballs. Place in a large baking pan in a single layer and cook at 350° degrees for about 30 minutes or until browned. Remove and drain off excess fat.
Meanwhile, prepare sauce. Cook 1/4 cup chopped onion in oil until tender. Add remaining sauce ingredients. Simmer 10 minutes. Place meatballs in a crock pot. Pour sauce over, cover, and keep on LOW setting for serving.