Saute onion and mushroom in olive oil for about5 minutes.
Add crushed tomatoes and rest of ingredients into large pot. Simmer for about 6 hours, covered. Stir occasionally.
In large bowl, combine meatball ingredients, mix well but do not over handle the meat. Form into 11/2 to 2 inch meatballs. In large skillet heat oil and when hot add meatballs and brown on all sides. Remove with slotted spoon and add to sauce while sauce is simmering. Meatballs and sausage will cook in sauce . Add parmesean cheese or serve on side over pasta. I prefer thin spagetti, but you can use what you like best.