Ok, i think i have a method worked out, you need to go down to your header bar, where you have the mode drop down (object, edit etc) next to that is the display drop down (solid, wireframe, texture etc), next to that is your pivot point drop down (media, active cursor, etc), then you have your 3D manipulator tools, these are what we need.
Changing the dropdown that says global to local will change your manipulator tool from this:
to this:
This now means you can transform your object locally to the object by hitting the axis button twice, so for example:
If you want to rotate it on the X axis of the actual object, then pressing R, then X will give you this:
Then if you press X again, it will give you this:
and you wil be able to rotate around the length of the actual object instead of the global axis.
When you enter a key frame after rotating using this method, you get a smooth animation instead of it warping and adjusting in relation to the global axis.
I'm off of work for a week from tonight, so at some stage i will try to make a quick video tutorial showing this in more detail.
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