I only used fraps for recording, it was ok. Though you should be prepared to store HUGE files, as raw video weighs a lot. Something like 20 gigs per 10 minutes or so for 1920x1080 resolution and 30fps (thats not really accurate, but gives an idea). Adobe AfterEffects is great for creating effects (check out those tutorials), Adobe Premiere Pro or Sony Vegas are popular for editing. As drk_ua_ said, H.264 is mainly used for encoding. I'd recommend to record a short (about 2 mins) video of gameplay, then try to render and upload it to get a grip, test the quality and so on. Can't give more detailed instructions because I don't know what you will actually use, but Internet offers plenty of tutorials no matter what software you pick.
As for where to get the software I'd say thepiratebay has it all. If you weren't planning on paying that is
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As for where to get the software I'd say thepiratebay has it all. If you weren't planning on paying that is