In a medium-size saucepan, heat the olive oil over medium-high heat. Add the onions, bay leaves, 1/2 teaspoon of the salt, the cayenne, and pepper flakes. Cook, stirring, for 3 minutes. Add the tomatoes, tomato paste, garlic, wine, 1 cup of the water, the basil, parsley, and sugar. Stir to mix. Bring to a boil, reduce the heat to medium, and simmer until thick, for 45 minutes. Add the calamari and simmer for 12 minutes.
Preheat the oven to 350 degrees F.
In a large saucepan over high heat, combine the remaining 6 cups of water, 1/2 teaspoon of the salt and the vegetable oil. Bring to a boil. Add the macaroni and cook, stirring occasionally, until tender, about 8 minutes. Drain and rinse under cool water. Pour into a 2-quart baking dish. Pour the calamari sauce over the macaroni and stir to mix. Arrange the olives on the top of the macaroni.
In a small mixing bowl, combine the bread crumbs with the remaining 1/2 teaspoon salt, black pepper and extra-virgin olive oil. Mix well and sprinkle over the olives. Bake until the bread crumbs are golden brown, about 30 minutes. Spoon onto serving plates and garnish with parsley.
Recipe from Everyday Is A Party Cookbook, by Emeril Lagasse with Marcelle Bienvenu and Felicia Willett, published by William Morrow, 1999.