Capturing with Fraps is extremely straighforward, it will use it's own lossless codec for initial capture, and you'll want to recompress it later on.
Setup is basically nothing, set Fraps to record at a suitable FPS and hit the hotkey, if your PC is unable to capture at your desired FPS, either lower your resolution in LFS, lower your capture FPS or set LFS at 0.5 or .25 (or .125) speed and record in a suitable FPS for speeding up later on, audio does become a problem when you record in slowmotion.
There's a "guide" here: http://www.lfsforum.net/showthread.php?t=219, it's pretty much right except there's really no need to limit the fps in LFS since Fraps will do it for you, and if you can record without using 0.5x speed, why not.
Edit: since you're using Premiere, don't bother with any of the VirtualDub stuff in the guide, if you need to speed up captured video do it in Premiere (200% speed for example).
I find it really hard to believe your RAM could eat 60 fps, is your fps still that low if you pause a replay on a full grid start, hop into shift-u camera and look around at all the cars?
Not the end of the world, but not very good (16% :zombie, might just be your link to that particular speedtest, most online/web tests are incredibly incorrect for obvious reasons.
No problems with T for me, few hours yesterday, 80 minute run in an endu race just now, no disconnections or lag at all.
Logic suggests that your CPU is falling behind when there's more cars to calculate physics for (more cars in view), try pausing a replay of a full grid and look at the difference in fps, that difference is probably close to the amount of fps sucked away by physics calculations.
Got the patch, drove a new PB on Kyoto GP / XRR, struggled at Blackwood in the XRT. Summary, race car behaves more like a race car, road car more like a road car, great.