Fraps caps your game frame rates when recording, that may be what causes the screen tearing.
Fraps uses pretty light compression(unless things have changed). This makes it more easy on the cpu but still will generate pretty large files. I am guessing your other issues may have been cpu related(only so much power to go around).
If fraps is set to record at the same frame rate as your monitor it may work, but I have not used it in a long time.