In a large bowl mix together, using your hands, 1/3 cup tomato sauce, 2 tablespoons sugar, mustard, 1 teaspoon chili powder, parsley, dried onion, and salt. Form the meat mixture into a loaf and place in a 9 x 5 baking dish lightly sprayed with cooking spray.
In a small bowl mix together the rest of the tomato sauce with the rest of the chili powder and sugar; pour the mixture over the top of the meatloaf.
Bake for 55 or 60 minutes or until done. Cool for 5 minutes before serving.