Need Some Youtube/Livestream Video Rec Advice :3

Videos recorded with Fraps aren't encoded with any codecs, so the output is AVI RAW, which is footage in a uncompressed high quality state (and thus the huge file size).

I would recommend using the Xvid codec for compressing the video to reduce file size while maintaining good quality (at about 3,000+ target bitrate). Virtualdub is a free video processing tool that you can use to compress your video with Xvid.

Fraps will only record content from the window (game) it was connected to, so it won't record anything off of your desktop.

I've had issues with trying to upload SWF files to Youtube (unless you mean FLV?). Also, according to Youtube's supported file formats, SWF is no longer listed.