I was wondering if there are any good alternatives to it? I've been wanting to record my gaming sessions for a long time, especially now as we are playing co-op games with my cousin (hilarity to the max), but I don't have the required capital to actually buy fraps.

So, any suggestions?

https://www.evolvehq.com

The Evolve client has game recording functionality. It requires Windows Vista or 7 though.
Xfire can also record games.

Not into recordings, but from what i heard, there really are no good free such programs. I heard Fraps has a free trial, maybe try that?

Without making any accusations, if you plan on uploading them on youtube, go for a legit license. The risk isn't worth it.

Risk? What risk? O.o

There is a whole legal industry out there "scamming" people on alleged software piracy claims. I don't know how it is with youtube, but whenever you put something that can be traced back to you on the net, better go for legit licenses.

Last I heard, it was more about web-pages (easier to find the owner), but I really don't trust youtube. Only a precaution, however, I don't have anything of youtube users being targeted yet.

I don't think there's even a way to prove it's been recorded via FRAPS after being converted to hell and back before uploading to youtube.

Get cracked fraps =)

Could very well be. I'm not tech savy enough to make any assumption. I know of a few audio cases were DJs had to pay serious fine for software they used. Don't know how they got caught, but they paid.

Precaution is the name of the game in those areas.

I've tried to find a free alternative but most of the software is either more expensive or free, but crap, discontinued ages ago or incapable of recording the current-gen games.

Most fun method involves VH Toolkit and Virtual Dub. The first turns screen output into a fake "webcam", the second captures the cam. It's very flexible. Google for details, but that stuff is not guaranteed to work in heavy 3D.

I'd rather not :)