You will get no benefit from going from 60 fps to 120. This is no first person shooter where you want to come up with some magical fps number. 60 is more than enough for about everything
When you say you have "1 drive with 2 drives" I assume you mean 2 partitions. To achieve best performance, it is advised to place the recording directory of Fraps (not the installation directory) to a physically separated disk.
As for the audio, leave the option as is. Your recording is already seperated in a video stream and an audio stream, both saved within the AVI container. Use any tool to edit them.
For recording your own voice, that's actually something I still haven't figured out. You
can do it (but I have forgotten how by now and am not on my gaming PC), but you will be (or at least I was) recording everything your microphone listens to, instead of utilizing Teamspeak's/Ventrilo's push-to-talk or voice activation. You could however directly record voice through those programs and mux the different audio streams later on (which you wanted to do anyway according to your description).
If anybody knows of an easy way to record game audio + Ventrilo audio including your own voice, and with using push-to-talk, by all means, please share it. It like my own voice in my videos as well.
