Fraps + GOOD hdd that actually can accept the speed and its not a joke. some of them are freezing sometimes - not an expert in it, something like buffering and it reduces the fps to 5-10 for 0.5sec. good one - st1000nm0011 partitioned to 3 parts ~ 300 Gb each. st3500630as is a good one also. wd1003fbyx is sh*t and freezing, same with st1500dl003 (maybe because its not partitioned) and st3120827as.
Those what i have(st1000nm0011+st3500630as) can support Frapsing at ~60 FPS x 1280*1024 without any freezes
For effects i would recommend Sony Vegas, but operate with only uncompressed files to not lose quality . After your movie is ready be sure that its resolution is something around 1600-1900 x 1080 ( the 2nd number is very important, because if youtube or any other video hosting will see the resolution at something ~1152*864 it will resize it to 480p which is really crap)