Is this correct?
 

Before the jump ball to start the game, a player takes a swing at an opponent. Official sees it and penalizes with a flagrant technical foul. Player is ejected. Offended team shoots two free throws and the game is started by a division line throw-in.

Is this a correct ruling? If not, what is incorrect?

Might depend on the rules code (and which test you are taking). ;)

But, in FED, you don't need to start with a jump ball.