Clarification: The "proof" assumed that $x^Tx\neq0$ and hence when we get $(\lambda^2-1)x^Tx=0$ the author of the proof concluded that $\lambda^2=1$.
However, one must remember that the proof is correct when $x$ is a vector with real entries. Otherwise, in general, $x^*x>0$ and not $x^Tx>0$ where $x$ is the eigenvector.
Hence, NO CONCLUSION can be drawn from this "proof". This is where the fallacy lies.
The correct method to proceed would be to consider $Qx=\lambda x$, where $x\neq0$. Then, $(Qx)^*=\bar\lambda x^*$ i.e. $x^*Q^*=\bar\lambda x^*$. Hence we have $x^*Q^*Qx=|\lambda|^2x^*x$.
Now use $Q^*Q=Q^TQ=I$ and the fact that $x^*x>0$, which shows that $|\lambda|^2=1$ and hence $|\lambda|=1$.
P is matrix of order n*n . and $p^3=p$ . is that either idempotent or orthogonal ?
– saudade Jun 21 '15 at 09:19