VirtualDub & Windows Movie maker will reduce these files further.
There is also programs like Sony Vegas & Ulead Video Suite, these allow you to cut/edit your film aswell as recoding the video so that the file size is smaller.
I don't know if all the movie makers around here leave Fraps running all the time, they may just turn it on/off when needed. You'll end up wih loads of clips which you'll need to 'stitch' together.
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