I like to use a cab-merlot as my red wine base. The cab is strong enough to carry the spices and the merlot will ensure it goes down smoothly. Both bottles or pre-blended bottle should be passable otherwise the sugar will just make it worse.
The usual spice suspects are cinnamon, a clove or two, allspice (optional), dried orange peel and a few fresh peels. Go easy on the spice or the brew will be too bitter. To sweeten, use whatever you and your guests like. Sometimes I use honey, sometimes raw sugar or even white sugar.
If you're looking for a pre-blended spice mix, Williams Sonoma makes a decent, though overpriced, one.