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Heat oven to 375°F. In large bowl, stir meatball ingredients until well mixed. Shape into 1-inch balls; place in ungreased 15x10x1-inch pan.
Bake 25 to 30 minutes or until meatballs are thoroughly cooked and no longer pink in center.
Meanwhile, in 3-quart saucepan, stir sauce ingredients until well blended. Heat to boiling over medium heat. Reduce heat to low; simmer 5 minutes, stirring occasionally.
Add meatballs to sauce; stir to coat. Cook over medium heat about 5 minutes, stirring occasionally, until thoroughly heated. Thread cranberries on toothpicks; stick toothpicks in meatballs to serve.