Place an 8-inch square baking pan in refrigerator.
Combine strawberry jam and apple jelly in a medium saucepan; cook over medium-low heat, stirring constantly, until jelly mixture melts.
Dissolve gelatin in cold water; add to jam mixture, stirring well. Bring to a boil; boil 5 minutes, stirring constantly. Remove from heat, and pour into chilled baking pan. Let stand overnight.
Turn candy out onto a board that has been sprinkled with sugar; cut into 1-inch squares. Roll each square in sugar.
Note: Powdered sugar may be used instead of granulated.