Network prediction is little tricky, but linear interpolation is a little easier. The network sample on the Unity page has lerping for both authoritative/non-authoritative. The concept is pretty much the same. Go check out the car scene in the network demo and look at how data is synchronized in the player prefab. You will have to manually synchronize data with OnSerializeNetworkView()… look for that method.
What you are likely seeing is moving an object from one position to the next as the view updates. While objects really do move as a series of small teleports, the goal is to speed up the teleports so each one is smaller and less detectable.