You're confusing three ideas, with a single law, our Constitution.
Dr. Paul is defending our Constitution and rule of law. Our Constitution prohibits the federal government from infringing on your right to burn any flag you like. Our Constitution also states that all other powers are reserved for the states and people. So, if the local people of a state decide to ban flag burning then that's where it could happen, but that doesn't mean Ron Paul himself specifically endorses it or not.
And if one state chooses to impose a ban, then other states are likely to not; resulting in a competition of ideas and places to live.
Ron Paul's Convention Speech
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