Hot German Potato Salad II

Bring a large pot of salted water to a boil. Add potatoes and cook until tender but still firm about 15 minutes. Drain cool and chop.

Place bacon and onion in a large deep skillet. Cook over medium heat until bacon is evenly brown. Drain excess grease from skillet.

Add the sugar and vinegar to the bacon and onion mixture and bring to a boil. Pour the mixture over the potatoes and stir.