Any good free software out there? I am used to iMovie on my Mac but these video files would burst my Mac HD... what's similar for PC?

Anyone use Adobe Premiere Elements?

I personally use Adobe Premiere Pro for everything but it's not free.

I think this has a free version but it's limited on what you can do:

http://www.microsoft.com/expression/products/encoderpro_overview.aspx

What sort of video editing are you doing?

For very basic editing, there's Windows Movie Maker from Microsoft which is free - http://windows.microsoft.com/en-gb/windows7/products/features/movie-maker. It may already be installed on your computer depending on your OS.

For more advanced editng I second Premiere Pro, but as mentioned above, it's for professional use so comes with a pretty hefty price tag. I've not used Elements, but here's a comparison between Prem Pro and Elements - http://forums.techsoup.org/cs/community/b/tsblog/archive/2010/11/17/premiere-elements-9-vs-premiere-pro-cs5.aspx

Sony Vegas is quite good. I've been using it for years.

I personally prefer Sony Vegas Pro but it's not free. Adobe Premiere is good too and the Elements version of it is quite good too.

If FRAPS video, I've always had problems getting the cheaper consumer video editors to work well with those files, maybe because of FRAPS proprietary codec format or something. They chunk badly and do weird sizing things when trying to convert....not saying they're all like that, but most that I've used/tried have.

Don't know about the more pro/expensive editors.
For cam type files...Sony Vegas consumer isn't bad, but won't say it's great. The pro version works pretty well tho.

If you just want to compress/splice a few game fraps videos together, VirtualDub still works. And it's free.

I recently edited my first video with sony vegas pro. It's quite complicated, so don't expect to learn it over night.

Adobe After Effects for, After Effects

Is there any consumer-range software that both allows me to edit video and record what's happening on my screen like FRAPS? Would be nice to have an all-in-one solution.

Generally a very limited editor to the point it's not worth considering.

Camtasia Studio is pretty good, I'm not sure if it only works on the desktop or in fullscreen games too though, since I used it to record a windowed game.

Try Snagit.