Combine the first 8 ingredients. Form into 40 bite-size meatballs using a a full teaspoon of meat for each meatball. Brown meatballs lightly in vegetable oil. cover and simmer for 10 minutes. Drain excess fat. Combine chile sauce and jelly. Pour over meatballs. Heat and stir occasionally, until jelly is melted. Continue to simmer for another 10 to 12 minutes or until sauce thickens. Serve warm.