In a large Dutch oven set over medium-high heat, sautee onions in olive oil until translucent. Add tomato sauce and paste and cook until paste is melted. Add 6 cups water; bring to a boil. Add garlic, basil, Creole seasoning and sugar. Reduce heat to low; cook for 2 hours. Add meatballs; cook for at least one additional hour, adding water if mixture becomes too thick. Serve with spaghetti and garlic bread.