Lightly grease a large baking sheet. In a large bowl combine all of the meatball ingredients and mix well. Shape the mixture into medium-sized meatballs. Place onto the baking sheet. Place into the oven and bake for 20 minutes.
Place the meatballs into a greased 9x13inch baking dish. Increase the oven temp to 375 degrees F. Pour the sauce over the meatballs. Cover and place into the oven and bake at 375 degrees for 30 minutes.
Remove from the oven, uncover and top wit mozzarella and parmesan cheese. Sprinkle with Italian seasoning. Return to the oven overcovered and bake until the cheese has melted.