Place all ingredients, except for the last 2 in a mixing bowl.
Mix with hands until all ingredients are blended - DO NOT OVERMIX (this will make the meatballs too tough).
Roll the mixture into 3/4 inch ball and place on a sheet pan.
Bake at 350 degrees for anout 20 minuted or until meatballs are cooked through.
Heat the jelly and chili sauce in a heavy sauce pan until it simmers.
Add meatballs and simmer for about 15-20minutes.