To prepare sauce, heat a Dutch oven over medium-high heat. Add oil; swirl to coat. Add 1 cup chopped onion, 5 garlic cloves, and basil to pan; cook 4 minutes, stirring frequently. Add tomato paste; cook 1 minute, stirring constantly. Stir in wine; cook 2 minutes. Add tomatoes and sugar; bring to a boil. Reduce heat, and simmer 25 minutes or until thickened, stirring occasionally. Stir in 1/2 teaspoon salt and 1/4 teaspoon pepper.
Preheat oven to 450°.
To prepare meatballs, coat 2 baking sheets with cooking spray. Tear bread into pieces, and place in the bowl of a food processor; pulse until fine crumbs form. Place breadcrumbs, 1/2 cup chopped onion, 1/3 cup parsley, and next 6 ingredients (through eggs) in a large bowl; stir until combined. Shape into 40 meatballs (about 2 tablespoons each); arrange meatballs on prepared pans. Bake at 450° for 15 minutes. Add meatballs to tomato sauce; simmer 10 minutes, stirring occasionally. Follow freezing instructions, or continue recipe.
Cook pasta according to package directions, omitting salt and fat. Drain. Top pasta with meatball mixture. Sprinkle with remaining 3 tablespoons parsley.
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