What is this thread? Try to sound techy by taking wild guesses?
To clear some things up:
No, fraps doesn't use a lot of RAM, only about 20 to 30 MB. 512 MB RAM shouldn't be a problem.
No, encoding high resolution video is not easy on the CPU, no matter what codec. At 1280 x 720 x 25 fps fraps uses about 50% of my 2.8 Ghz AMD X2.
Video Data rate is about 20 MB/s so any Hard Drive made in the last few years shouldn't have a problem, unless it's very fragmented.
And among all that "advice" you missed the one that really matters: dual core CPU.
Personally I record at half speed and then double the framerate in virtualdubmod and use the built in stretch filter to fix the audio as well. But if it's for youtube 25 fps is enough.