Thoroughly mix 1/2 cup picante sauce, beef, bread crumbs, egg, parsley, Worcestershire and half the garlic in a large bowl. Shape the beef mixture firmly into an 8 x 4-inch loaf in a baking pan.
Stir the oil and remaining garlic in a large bowl. Toss the potatoes with the oil mixture until they're evenly coated. Sprinkle the potatoes with the paprika. Arrange the potatoes in the baking pan around the meatloaf.
Bake at 350 degrees F. for 1 hour or until meatloaf is cooked through. Pour the remaining picante sauce over the meatloaf before serving.