Heat oil in a saucepan over medium-high heat. Add the fideo, and fry until browned. Pour in half of the can of tomato sauce, and 1 cup of the water. Season with cumin, garlic salt and chili powder, and stir to blend. Bring to a boil, and cook until the liquid has almost evaporated.
Stir in the remaining tomato sauce and water. Cover, and cook over medium heat for about 10 minutes, or until the fideo is tender, and the sauce has thickened.