1. Preheat oven to 400 degrees.
2. Melt the butter in skillet, add shallots (with roots intact) and sugar, and toss to coat. Cook over medium heat for 10 minutes, tossing occasionally, until the shallots start to brown. Add vinegar and season with salt and pepper.
3. Place the saute pan in the oven and roast for 15 - 30 minutes, depending on the size of the shallots, until they are tender.