In a bowl, combine the first six ingredients. Crumble ham and beef over mixture and mix well. Shape into 1-in. balls. Place in an ungreased 15x10x1-in. baking pan. Bake, uncovered, at 350° for 15-18 minutes or until meatballs are no longer pink. Remove from pan; drain if needed.
In a large skillet, combine jelly and mustard. Cook and stir over low heat until jelly is melted. Add meatballs. stir to coat.