What you do, in part, depends on what the absolute encoder is putting out (0-359?) Typically something like [Scale rotminvalue rotmaxvalue 0 127] in to a line object to perform smoothing should do the trick. Or is it something trickier in which case we may need more info…

With that range you won’t of course get the precision to place the image to a single degree, but with that said, it should be possible to have a gradual motion to your destination without ‘marked leaps". I’ve attached an example here, but not sure how you’re going about it with yours. Maybe you could post your patch…

-- Pasted Max  Patch, click to expand. -- 
Copy all of the following text. Then, in Max, select New From Clipboard.
----------begin_max5_patcher----------
540.3oc0VEraiBCD8L7UXYsGyVgMP.5s86XUUkAll5JhIx1oa1sp+6KLFRHs
MEHcaV0K1Byvad944Mlm78n406.CkbM4mDOum787vkZWvq6YO5ZwthJgACip
1tNGzzEtWcWsxZj+AZeEieUP2xazfATVgUVqtUCEVWF3goMgPh3YsSAcCja5
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viiaFCiylSc1xwqyXNAycXbpBsz+21tozeexcpYIscpYYAi2oN4qQi5Q8fyz
MwSG0LwiW9VlonOWyDRCrc6K9+.bufsgORkL0a0E830wOxgMSIXrRE1YZPLo
GEy8xxRPMjnkRSK2wMcvadZMU1jNA1vhtXzIaJzI9hQm1q2FkOYWN5LkZmWv
4OS9LE5jblrw4yDa17HnMcPhDoouyC0582sPaZq3dDQjpgGk8wG52h1y9+kt
wR63
-----------end_max5_patcher-----------