Cook manicotti according to package directions. Meanwhile, crumble sausage into a nonstick skillet; add the red pepper and onion. Cook over medium heat until meat is no longer pink and vegetables are tender; drain. Drain manicotti; set aside.
In a bowl, combine the sausage mixture, egg whites, cottage cheese, mozzarella cheese, 1/4 cup Parmesan cheese, parsley, basil, fennel and pepper. Stuff into manicotti shells. Combine spaghetti sauce and water; spread 1/2 cup in an ungreased 13x9-in. baking dish. Arrange shells over sauce; top with remaining sauce.
Cover and bake at 350° for 35-40 minutes. Uncover; sprinkle with remaining Parmesan cheese. Bake 10-15 minutes longer or until cheese is melted. Let stand for 10 minutes before serving.