Combine salt, pepper, and flour; mix well. Dredge shanks in flour mixture, coating well. Place shanks in a greased 2 1/2- quart shallow baking dish. Cover and bake at 350° for 1 1/2 hours.
Combine remaining ingredients in a small Dutch oven; bring to a boil. Reduce heat; simmer 5 minutes, stirring frequently. Spoon sauce over shanks. Cover; bake at 400° for 30 minutes or until shanks are tender.