Stabilise potentiometer readings?

I think Chargin & cyclegadget are confusing accuracy and stability.

The normal stability for any A/D converter can only ever be +/- 1 so at a stability of +/- 2 there is room for improvement.
Yes a capacitor would help damp down any noise pickup. A 0.1uF across the wiper of the pot and ground will help. As will a software solution like that filter above.