Rotating an image

I have an imported jpeg in my flash file that I want to display rotated slightly (15%).
If I use the Free Transform tool or the Transform>Rotate and Scale method, the image shows up very pixellated when I run the file.

So my question is… is there a way to rotate an image and have it display crisply in Flash?

(Rotating in Photoshop does not work as the white area shows up behind the rotated canvas.)
Thanks in advance…