Preheat the oven to 375 F.
In a large mixing bowl, mix together the meatball ingredients using your hands.
Roll the meatballs into about 1 1/2" balls and place on a baking sheet. You should get about 40 meatballs.
Bake the meatballs for 30-35 minutes, or until the internal temperature has reached 165 F.
While the meatballs are baking, combine all the sauce ingredients, except the arrowroot flour and warm water, in a medium sauce pan and bring to a low boil.
In a small bowl stir together the arrowroot flour and warm water until smooth. Pour the mixture into the sauce pan and whisk until the sauce thickens. Turn to medium low and stir occasionally.
When the meatballs are done, transfer them to a large serving dish and pour the sauce over them. Stir lightly to coat all of the meatballs with the sauce.