Too much lag with fraps
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Do you run your server on the same machine as you play freelancer/run fraps? If not then it really shouldn’t lag when you record as the work is being don on he client side.
Small things that can be done to reduce lag in fraps…
Record to a different hard drive than the one windows is on (physical drive, not just drive partition)
You should also reduce the resolution and frames per second in the recording to minimise lag when recording.
If you have a dual core processor, you can try assigning fraps to another core.
Finally, from control panel, open “System” -> “Advanced” -> “Performance” “Settings” -> “Advanced” (again) and select the radio button “Background Services” and press “OK”.
That should help with the resource allocation for fraps
You should also try this tutorial, it will improve your general system performance which will also help