(for the meatballs;) combine all the ingredients in a medium bowl, except olive oil and season with salt and pepper to taste.
heat the oil in large saute pan over medium high heat. roll the mixture into 1 1/2 inch balls and fry until golden brown, but not cooked through completely.(remove with a slotted spoon to a plate lined with paper towels)
(for the tomato sauce;) heat olive oil in a medium saucepan, add onions and garlic and cook until soft. add crushed tomatoes and juice, bay leaf and parsley, pepper flakes and salt and pepper and bring to a boil. reduce heat, add meatballs and let simmer for 30 or 40 minutes, until the sauce has thickened. remove the bay leaf and parsley, add the basil and serve.
(for the spaghetti) bring salted water to a boil. add spaghetti, bring salted water to a boil. add spaghetti and cook until al dente. drain well in a colander, toss in sauce, serve with meatballs and parmesan cheese.
(for the garlic bread) combine butter and garlic. spread evenly on bread and broil until browned.