Fraps freaking out would have something to do with the changed way of how the rendering tasks are ordered, or some other change in the new version. Could be related to the issues occurring in the unstable version and I hope it gets resolved when we identify the source of those problems.
Although, chance is that it won't work unless Fraps and Dxtory guys specifically address the OT game loop. The problem is that these programs hook into foreign processes and capture their screen buffers, using some means of detecting when frames are pushed for rendering. But in doing so they can mess up either the target app rendering or not read the frames correctly in some conditions. It would be best to submit the request to handle OT to them because it's completely in their hands. But I'm not sure they will be able to handle it. Looks like the problem is that in OT, after the frame is rendered, it can be immediately followed by a few rendering tasks used to generate terrain. Maybe that's what confuses Fraps, as previously these tasks went before the frame render. But as I said, it would be best to submit it as a request to them.
Btw we plan to add automatic conversion of our captured videos to AVI. Upon quitting the app it will ask if you want the videos to be converted.