I think that example would have just been for drawing an anti-aliased line, no way to do the same for sprites.
That's not to say we can't try and fake it though.
Try using an image that is a bit bigger than you need. If your sprite is 128x128, try making it 192x192 and scale it down to 66.666%. That will give it a little extra to blend with when rotating and might improve the jaggies.
Another thing I would suggest is enabling or disabling that flag when loading an image, just to see what difference it makes. If you load your sprite like this:
LOAD IMAGE "mysprite.png",10
Try adding a ,1 at the end...
LOAD IMAGE "mysprite.png",10,1
And vice versa. The 1 flag should load the image with no mipmaps, but that might not be ideal but is worth a shot - loading with no flag should load it in with mipmaps - which often smoothes out the image.