Place tomato sauce in large pot on the stove on medium heat.
Soak crustless bread in medium bowl with the two cups of water about 2 minutes until bread is totally moistened; squeeze out excess water.
In a large bowl combine bread and all other ingredients except water, mix well with hands until all are combined. Add water if needed.
Transfer onto plastic wrap and flatten meat to about 1/4 inch (this is an easy method to make meatballs eaqual in size, but optional of course; score meat mixture into 2 inch squares, (like a checker board).
Roll'em up and place them in sauce.
Stew in sauce for 20-25 minutes, stirring occasionally.