Free and complete versions of Fraps are all over the internet. Though I'm sure there are a few here who would recommend something different (and probably superior)
Yes, you will need a program to render out your videos. Fraps creates massive files (3-4GB for a couple of minutes for myself) which of course, will take almost a day to upload.
There's stuff like Vegas Pro out there but if you can't be bothered you can always use shitty windows movie maker.