FRAPS is probably the best tool available for in-game video capture but like people have already said, it can really deteriorate performance, especially in a CPU heavy environment such as a multiplayer system during a battle. To achieve the best performance from this tool I would recommend using a "scratch-disk", a secondary or tertiary high speed hard drive with little or no data already on it, to reduce the strain of fragmentation that Windows is so good at :0)
Also, for editing, a professional suite like Adobe Premiere Pro will enable very high quality video encodings without the burden of file size, WMV format tends to give good results (none of that horrible blurring associated with heavy Div-X or similar format encoding).
Of course, there are lesser, "free" alternatives to Adobe Premiere... but in this day and age I'm sure if you really wanted to you could find somewhere to source* it from...
* Software piracy is illegal in some countries and only for pirates ;0)
Indeed Adobe Premiere Pro all the way. Thats what I use and it is the only thing to use.
<<<<<The Jade Consortium>>>>>
<<<<<To Fight Is To Live>>>>>
<<<<< Xerxas Jades BIO >>>>>