Step 1: Preheat oven to 350 degrees F.
Step 2: In a mixing bowl, beat together egg and 1/2 cup water.
Step 3: Blend in the beef, bread crumbs, salt, horseradish, and waterchestnuts; do not overblend, or meatballs will end up tough.
Step 4: Shape mixture into balls about 3/4 inch diameter and place on a foil lined cookie sheet.
Step 5: Bake at 350 degrees for 30 minutes or until lightly browned.
Step 6: Meanwhile, make sauce by mixing marmalade, garlic, soy sauce, lemon juice and water in a saucepan; heat slowly, stirring often.
Step 7: Place cooked meatballs in a serving dish and cover with sauce; stir gently to coat meatballs thoroughly.
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