You'd still want to use fraps imo, and then you want to use Virtual Dub for editing simple edits, and if you want multiple tracks aka a voice over, you can do it in virtual dub but I prefer to use Sony Vegas for this kind of thing (older versions of Windows Movie Maker had multiple tracks too). As Havoc suggested, Adobe Premiere Pro is also great alternative, although I only use it to make video remixes but yeah it works.
Also, VirtualDub can compress video from Fraps. Get a good compression codec so you don't end up wasting alot of space. It isn't that hard to learn, either.
Havoc, you might want to use another piece of software to record your audio, like audacity, or alternatively, I have found that setting my PC to playback what I'm saying in the mic over the speakers/headset works and fraps will pick up the audio from it (play around with sound options or something).
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FrankerZ
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