Google searching turned up a few very old posts about this issue with no fixes/workarounds but I just ran into this issue on 10.1.1.
With a SimpleMarkerSymbol the point graphic stays spot on when zooming in and out, but with a PictureMarkerSymbol when you start zooming in the image starts shifting up (north) and when zooming out it starts shifting down (south).
Any ideas for a workaround to this issue?
Thanks a lot!