Combine meat and rice in a large bowl. Add 1 teaspoon salt and 1/8 teaspoon pepper, mixing well. Shape mixture into 1 1/2- inch meatballs. Place meatballs in a shallow 2 1/2-quart casserole; set aside.
Sauté onion, green pepper, and garlic in hot oil in a large skillet until tender. Add tomato juice, and remaining salt and pepper; pour sauce over meatballs. Cover and bake at 350° for 1 hour and 15 minutes or until rice is tender, turning meatballs occasionally.