Preheat oven to 400 degrees.
In a large bowl, combine first 10 ingredients (ground beef through egg); blend thoroughly with your very clean hands then shape mixture into 1- to 2-inch meatballs and place them on baking sheet.
Bake for 20 to 25 minutes. In a large saucepan, combine remaining ingredients (celery through salt); add cooked meatballs and cook for 10 to 15 minutes.
Reduce heat and simmer for 10 to 15 minutes; serve.