1. Preheat oven to 350 F.
2. Cook spaghetti noodles according to package directions; drain.
3. In a large skillet, cook ground beef, onion, and garlic until meat is brown and onion is tender; drain fat.
4. Stir in pasta sauce, mushrooms, olives, and pepper.
5. Place 1/2 the cooked pasta in a greased 3 quart casserole dish.
6. Spoon 1/2 of the sauce mixture on top.
7. Sprinkle with 1/2 of the cheddar cheese then repeat layers.
8. Stir together soup, Paremsan cheese and 1/4 cup water; spoon over top.
9. Bake, covered, for 35-45 minutes or until heated through.
10. Uncover and bake 5-10 minutes more.