The reason why this is happening is because in strip chart mode, everytime you update the point, the axis has to rescale itself. In this case, the axis (and all the displayed data) has to be scrolled back by a certain amount (based on the interval you specify) everytime the timer tick occurs. In the case of your example, this rescaling is occuring every 50ms. One way to avoid that scaling would be to use the scope chart mode on the x axis instead of the strip chart, but that might not be what you want.
According to persistance of vision studies, if an image is updating slower than approxiamately 10 frames per second (or slower than 10ms updates), the eye percieves the image to be jerky (there is probably more to this, but further research into the mechanism of persistence of vision will be left as an exercise to the reader).
Notice your example becomes much smoother if you change the update rate to 10ms from 50ms. So I would try changing the sampling rate of your data to update every 10ms instead of 50ms. That would probably spread out the data, but I believe it should help make the graph smoother.
I hope this helps
Bilal Durrani
NI