Fraps videos are huge anyway... i recorded 30 minutes of full video at the last LAN party i attended, as i film the events and do promo videos for them and that 30 minutes took up 24GB on my hard disk. The exported video was 500MB with the sound being 50MB, which is 10% so its not gonna reduce the file size that much to be honest.
Best thing to do is edit it with a video editing program and export it as a compressed AVI then use something like Xvid or Divx to compress it further...
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