Yes Fraps is only the recording program. After a race when Bruce posts the Server Replay and Race Report, you put the Server Replay in your rFactor Replay folder, which goes into the ILMS folder inside it. There are "Hotkey's" you can setup to press to Start/Stop the recording's. Mine are F9, and there is a box that tells you all this info.
On a side note, in rFactor's Control panel, near the bottom you will see about 24 different Camera controls you can use, i can help you with those if you want.
As for the Editing program, Window's Movie Maker is FREE, and should come on your PC, if it doesnt you should be able to download it without paying for it. Again, this is your basic editing software, nothing fancy, and very easy to use.
And when you want to start recording a video, start up Fraps, then start rFactor, go into the Replay and get to the correct time/camera angle's you want then start recording and stop when you have the footage you want. Move the camera's were you want it next, then start again, ect. When your all finished gathering footage you will find all your Video Clips in the Fraps movie folder or were ever you choose to have them go (this is done when you get Fraps). Then import them into Window's Movie Maker and they appear in a Timeline and you can move the clips around, make them in any order you want to. Setup a Title, ending credit's, music ect.
When you are done, upload it to www.sendspace.com and pass the "Download link" to Bruce, he will upload it on the VOR forums for you.
Any questions just ask
Bruce - You have to render WMM correct? If so do you remember the process? Been awhile since i used it.