why would you ever want to render a video in Windows Live Movie Maker? the quality it ends up with is horrible, but I guess it's better then nothing!
And yes Fraps is definetly the way to go if you want to capture a video, and imo the best rendering / Editing program is sony vegas, get those 2 and you are ready to go!
this is one of my vid's in SP with 1080 res recorded with fraps and edited in vegas, enjoy
http://www.youtube.com/watch?v=cXWLmC4t72Q&feature=channel_video_title