In a large frying pan with cover saute onion in oil until soft; add meat and garlic, and cook, stirring until meat is broun and crumbly. Stir in tomato sauce, tomato paste, wine, and water. Add salt, oregano, pepper, sugar, stirring until mixed. Cover pan and simmer slowly about 1 1/2 hours. Meanwhile cook noodles.
In the bottom of a 9 X 13 casserole dish put one layer of noodles. (Lay one layer of noodles lengthwise in the dish and the next layer crosswise. Alternate this way as you go.) Spread 1/3 of the sauce over the first layer of noodles; top with 1/3 of the ricotta and mozzarella cheese. Repeat this layering two more times. Top with the Parmesan cheese.
Bake uncovered in a 350 oven for 30 minutes.