In covered blender jar, blend bread slices, 1 slice at a time, at low speed until crumbed; set aside in mixing bowl. Blend 1/2 of tomato sauce, the milk, 1 egg and onion at low speed until onion is chopped; add to crumbs. Blend ham in 4 runs at low speed until chopped. If necessary, stop blender and push ham toward blades with a spatula; add to crumbs and sauce with ground beef. Mix well, pack lightly into a 9 x 5 inch loaf pan. Bake for 1 and 1/4 hours at 350 F. Blend remaining half of tomato sauce, 2 tbsp water, 1 egg, sugar, vinegar, butter and mustard at low speed until smooth. Pour into a small saucepan and cook stirring constantly until thickened. Serve sauce with the meatloaf. Serves 8.