I have had a similar problem when I animated a 3D-model in 3DsMax, then exported it as seperate .png-frames and then imported those images onto the timeline, making it loop. For an example, see http://www.gamersnet.nl/?skin=oranje2013 . It's the little crown in the middle. I wasn't able to fully eliminate the pause, but it's a lot less worse and not noticable unless you know/are looking for it.
The thing is that when doing any sort of animation, you set a start and an end position. In this case the start and end position where the same. This means that the first frame of the animation and the last frame of the animation are identical. So to make the transition smoother, I deleted the last frame(s), so that there were no identical frames.
I am not sure if this is also the case with your problem (I have never used Papervision3D), but the problem seems similar to the one I encountered. So maybe the solution is the same :)