SPAGHETTI: Heat oil in Dutch oven. Cook and stir onion and garlic in hot oil until onion is tender. Stir in tomato sauce, mushrooms (with liquid), green pepper, parsley, salt, pepper, sugar, basil and oregano. Heat to boiling; reduce heat. Cover and simmer, stirring occasionally, 1 hour. Stir in wine. Cover and simmer, stirring occasionally, 30 minutes. Uncover and simmer, stirring occasionally, 30 minutes longer. While sauce is simmering, prepare Meatballs. While meatballs are cooking, cook spaghetti as directed on package; drain but do not rinse. Spoon meatballs onto spaghetti; cover with sauce. Serve with cheese. MEATBALLS: Mix all ingredients except oil. Shape by rounded tablespoonfuls into balls. Heat oil in 25 cm skillet. Cook meatballs in hot oil until done, about 20 minutes.