Fraps recordings are very large because your computer can't compress the movie capture while its recording (that would take an amazing amount of CPU power). So as a result, Fraps recordings aren't really compressed. You'll need a movie editing program to compress it and agrange your scenes.
Most people when starting out compress/make their movies with Windows Movie Maker since it comes with Windows and its free. It's pretty basic but for movie making I wouldn't just to buying programs right off the bad. Check YouTube for tutorials on how to use the program.
Professional programs such as Adobe Premiere, Sony Vegas can do all the fancy stuff. But they're generally very expensive and take a while to learn for someone who is totally green in this area.
Search the Films/Screenshot forum, there are tutorials on how to do the basic AH movies and captures and editing.
And if you want to learn how to use the camera shots in Aces High Film viewer (for making more advanced movies), check out my tutorial.
http://derstuhl.net/ahmd/uploads/Aces%20High%20Training%20and%20Help%20Movies/ahfilm_camerashots_tut.zip