I can live with the 1% (even 2%)....quiescently, I was seeing jitter of just over 1%.(ie readings of 127,127,126,127,17,126, etc)
The accuracy of your ADC 'zero' point is obviously going to be down to how you approach DC biasing your AC signal feeding into the ADC pin - as a late suggestion, have you tried a DC blocking cap between your AC signal input & your chosen ADC pin? Obviously you then have to rebias the ADC pin - but 2 x 1% tolerance resistors between your PIC VCC & Gnd should ...with the the resistor junction connected to your ADC pin, should get you incredibly close to a reading of 512.
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