The rough idea I had was that RP^2 is the collection of all lines in R^3 passing through the origin, so if we rotate each line by some angle, then the origin is a fixed point and all other points have periodic orbits.
Don't know how to formally proceed though.
Thanks for the help!
You can use the fact that the projective plane is equivalent to a sphere with antipodal points identified. Thus it is sufficient to find a flow on $S^2$ which is invariant under reflection (so that it lifts to projective space unambigously) and has two (antipodal) fixed points and all other orbits periodic. Can you do it? Hint: there is a particularly simple example with nice geometric interpretation.