FRAPS always caused input lag for me (and capped my fps), so I went the expensive, overly complicated route.
I have my two monitors over DVI and an active display port to HDMI adapter (the HDMI is just duplicating my primary display).
I use Virtual Audio Cable to do live audio muxing, windows default playback device is a virtual cable, that is then repeated out my speakers, and muxed with my microphone and repeated out the HDMI on my video card.
then my 2nd computer has a HD Live Gamer capture card which is connected to my desktop over HDMI. Then Xsplit captures that device, and I stream and record locally at the same time. I record at a ridiculous bit rate, trying to get it near loss-less.
My only issue with my setup is that the CPU I got in my stream box (A8-5600k) is a little under powered to do 1080p60 x264 encoding at the highest quality, which is why everything is 720p right now. When I got that capture card, I didn't realize I could either use it to Capture OR Encode, not both.
I like Xsplit, there's just a lot of CPU overhead unfortunately, which is why I can stream and play on the same computer.
you should see the cables behind my entertainment center.
http://youtu.be/P8YrglA5DKk
The most talked about kill.
Same issue as Stone Guard, I'm going to post the 25m version of Gara'jal instead of the 10, since it won't have that issue. But Elegon will, since we haven't killed it on 25 yet. http://youtu.be/Ya6vky81RKA