Fraps starting to lag on Minecraft?

Ok. So when I first got my PC, which is about a year ago, I would run Minecraft incredibly smoothly. When I record with Fraps, ran smooth. But now, what happens is that whenever I record fraps on minecraft, i drop at LEAST 40 frames. Average, i drop 80 FPS. So that is Really laggy. I already updated my graphic card drivers, tried putting more ram into Minecraft and fraps alone, but it still doesn't do anything. I'm not going to change my fraps settings, because it doesn't make sense for it to get a lot laggier than before, when my settings were the same. So what do i do?

40 fps? It sounds like you are not recording at 30 fps which you should considering YouTube is restricted to 30 fps either way. Also Hard Drives wear out overtime, you should benchmark your Fraps Hard Drive to check how is the speed (you generally need over 70 MB/s for stable performance).

You should read this Guide how to get the best Performance out of Fraps. It should cover most of things which you might have set up wrong:
http://EncodingTalk.com/threads/best-fraps-performance-tips-afaik.559