Sprinkle ribs with salt and pepper. Place ribs in a shallow roasting pan. Add 1/2 cup water to pan. Cover and bake at 300-degrees. for 1 3/4 hours, or until a meat thermometer reads 160-degrees.
While ribs bake, in a medium saucepan, combine 1 cup water, ketchup, brown sugar, vinegar, Worcestershire sauce, celery seed, chili powder and hot sauce. Bring to boil. Reduce heat; simmer, uncovered, for 5 minutes, stirring occasionally. Pour 1 cup sauce over ribs, turn to coat. Let stand for 15 minutes.
Grill ribs over medium heat for 10-12 minutes, basting with 1/2 cup sauce and turning occasionally. Serve with remaining sauce.