I hope this is not to late. (and Sorry for my grammar too)
You need another hdd separated from you main hdd (that install windows and sdgo) to make recording running smoother. (suggest hdd that can WRITE fast)
Because, Most problem come from you hdd cannot write as fast as it need.
So it end up eating system resource too much
I also recommended Dxtory over Fraps over Anything that can screen recording for game recording.
For Video Compression
I using VirtualDub with Xvid MPEG-4 Codec for easy quality and less confusion (I'm currently try x264 but recent setting still poor quality)
Get another separated HDD
Using better video recorder
Compress Video with VirtualDub with Xvid MPEG-4 Codec
Example of Dxtory+Vdub+Xvid MP4 setting. (no editing)