In a Dutch oven, cook onion, garlic and crushed red pepper over medium heat until onion is translucent. Stir in tomatoes, water, seasoning, cheese rind and 2 T parsley. Simmer covered for 2 hours, stirring occasionally.
For the meatballs
(makes about 3 dozen 1 ½ inch meatballs) Preheat oven to 350 degrees. Combine all of the ingredients. Form into balls. Place on a parchment lined baking sheet and bake for 20 minutes. Gently put the meatballs in the simmering sauce and simmer for another 30 minutes. Serve over angel hair pasta.