Mix all meatball ingredients. Form into balls and drop on to cookie sheet with tinfoil coated with Pam. Bake at 350 for ~45 minutes until lightly browned.
Saute onion until pieces are turning clean. Add garlic and saute ~2 minutes more. Add pepper flakes and saute 1 minute. Quickly add the canned tomatoes, then the rest of the ingredients except for the basil. Simmer for at least 30 minutes. Remove from the heat, and add the fresh basil and stirring in well ~5 minutes prior to serving. Add the meatballs, stir in and serve.