In the case of 8fps, I would be pretty mad too!

For the FSRecorder bit, it is a utility that runs inside of FS, and you use it to record a flight, and it also comes with editable custom cameras.
What I do is record my flight using this first, allowing me to concentrate on flying as I only have the FRAPS demo, it gets a little inconvenient to constantly monitor the recording status and maintain a decent flight.

And when that is done, I fire up FRAPS and play back the recording I made with FSR and make my clips that way.
I'm not sure if this will help, but my thinking is, if the sim is just doing a playback, then it may not be drawing upon the same amount of CPU resources as it would with the real time flight, thus allowing for a slightly higher frame rate during FRAPS use.
I've personally never experienced a frame drop as severe as yours, and can understand the frustration, but I also do not have the paid version (I'm cheap.

) but it may have extra options or features running that draw upon extra CPU resources that could be slowing things down.
If it was fine yesterday, but bad today, then I would say your present settings are fine, and it is indeed something in FRAPS. A long shot here, but have you tried their support? I know sometimes those things can be a waste of time, but it is worth a try.
I will play around with mine some more and see what I can come up with on my end.
Let me know how it's going on your end.
