Heat oven to 350 degrees F. Melt chocolate in top of double boiler over simmering water; stir until smooth. Cool.
Mix flour, soda and salt in bowl.
Beat the shortening and sugar in bowl until light and fluffy. Beat in the chocolate, then eggs, corn syrup, water, peppermint extract and vanilla. Stir in flour mixture.
Mix sugar and candies in a bowl.
Shape dough into 1-inch balls. Dip a side in topping; place, candy side up, on ungreased baking sheet.
Bake in 350 degree F oven for 10 minutes. Cool on sheets on rack 5 minutes. Remove to rack to cool completely.