Of course I'm just guessing, but you don't necessarily have a problem. When I'm loading file sizes in the gigabyte range, then they just take a long time to load. As in time to go get a coffee refill, and still not done. This is on my machine with a 3.2gig, tri-core processor, and 3.25gig memory (the most 32-bit Windows can use).
I'm not on the VideoPad staff, but it's obvious that VideoPad does a lot of pre-processing when you load a video. It has to do this so you'll get immediate results when you move the time slider, or otherwise edit.
A quick Google shows that Fraps is not famous for outputting small file sizes. You might look around YouTube for how to make your Fraps files smaller.