Zoom In or Out on an image/movie by using the Zoom commands in the View menu, or the toolbar.
Rotate an image/movie in 90 degree increments, either clockwise or counter-cliockwise, using the Rotate commands in the View menu, or the toolbar.
Notes for PDF, EPS, and PDF-Compatible Illustrator Files
With these image types you can zoom in and out without creating 'jaggies'. The image will continue to look smooth because of the nature of these image types. However, if you rotate one of these images it will be converted into raster/bitmap data and subsequent zooms will display jaggies just like any other bitmap file.