In a medium bowl combine chicken, breadcrumbs, pesto and salt and freshly ground pepper to taste; mix gently. Form into 1-inch balls.
Coat a large nonstick skillet with nonstick cooking spray and place over medium heat. Add meatballs and cook 8 minutes, turning occasionally until all sides are browned. Add vegetables, milk and water as listed on fettuccine mix package. (Do not add oil if listed on package.)
Bring water to a boil.
Stir in fettuccine and seasonings from package; add 1/2 cup water. Simmer, uncovered, 7 to 8 minutes or just until pasta is al dente, stirring frequently. Let stand, uncovered, 5 minutes to thicken. Season with freshly ground pepper to taste, and serve.