Oh look, we're all getting confused here. FRAPS knows nothing about FSX. It captures bona fide video - i.e. raster images at, typically, 30fps and saved in .AVI format. It includes sound and can be edited with any decent video editing program. However, you don't want to send raw FRAPS videos to anyone because they're enormous - the FRAPS codec has to capture in real-time and is optimised for performance, which means it does minimal compression. Your video editor will allow you to output in a more compact form.
For editing, I can vouch for Adobe Premiere Elements 7. Version 2 worked well, and version 3 was great but wouldn't run on Windows XP. Version 4 was buggy as hell and they never bothered to fix it. Versions 5 and 6 didn't exist, and version 7 is stable, more or less even if it looks like an explosion in a Lego factory. It saves automatic backups and has only one major bug, which is more or less predictable once you know what to look for. For me, stability and security of investment are absolute requirements for a video editor, which is why Pinnacle Studio went in the bin the first time it destroyed a week's work without warning or apology.