Cook bacon in a large Dutch oven on grill over medium coals until browned and crisp. Drain on paper towels, reserving 2 tablespoons drippings in pan. Set bacon aside.
Sauté onion in drippings until tender. Add sugar, flour , salt, and pepper; stir well. Gradually add vinegar and water; cook over medium coals, stirring constantly, until thickened and bubbly. Stir in cabbage. Cover; cook 15 to 20 minutes, stirring occasionally.
Place sausage on grill 3 inches from medium coals. Grill 15 minutes, turning as needed. Sprinkle bacon over cabbage, and serve with sausage.