Cook ground beef, onion, and garlic over medium heat until well browned. Stir in crushed tomatoes, tomato paste, tomato sauce, and water. Season with sugar, basil, Italian seasoning, 1 teaspoon salt, pepper, and 1 tablespoon parsley. Simmer, covered, for about 1 1/2 hours, stirring occasionally.
Bring a large pot of lightly salted water to a boil. Cook lasagna noodles in boiling water for 8 to 10 minutes. Drain noodles, and rinse with cold water.
In a mixing bowl, combine ricotta cheese with egg, remaining parsley, and 1/2 teaspoon salt.
Preheat oven to 375 degrees F.
To assemble, spread sauce in the bottom of a baking dish. Arrange 6 noodles lengthwise over sauce. Spread with ricotta cheese mixture. Top with mozzarella cheese and a little parmesan cheese. Repeat layers to finish with mozzarella and Parmesan cheese. Cover with foil.
Bake in preheated oven for 25 minutes. Remove foil, and bake an additional 25 minutes. Cool for 15 minutes before serving.