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1. Heat oven to 350 degree F. Combine egg, bread crumbs, 1/4 cup of the onion, and the oregano in a large mixing bowl. Add the ground beef and mix well. Shape into 42 meatballs about 3/4-inch in diameter. Arrange in a single layer in a 15x10x1-inch baking pan. Bake for 12 to 15 minutes or until no pink remains. Drain well.
2. Meanwhile, cook remaining 1/4 cup onion and the sweet pepper in hot oil in a large saucepan until vegetables are tender. Stir in tomato sauce, brown sugar, mustard, chili powder, black pepper, garlic salt, and if desired, hot pepper sauce. Bring to boiling. Reduce heat and simmer, uncovered, for 5 minutes. Serve immediately. Makes 21 servings.