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Ideally render the same footage multiple times will drastically lower the quality. If possible I would say try to edit the videos from the fraps files because that will be best. For a couple hundred bucks (if you got it) you can get your self a pretty decent computer to be able to edit on.
In your situation, there are not many options. It may be painfully slow to edit the videos without compressing them but in the end it is worth it for the quality.
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