I upgraded VideoPad to version 2.3 and it does have some delightful new features. Although it still wigs out and dies when you try to directly make use of Fraps-codec videos, so I still need to pass them through Windows Live Movie Maker (the horror), it is considerably improved since the previous version I had.
My favourite new feature is the overlay system — using it, I hid the Warcraft cursor that Fraps couldn’t filter out (the DroneCam system I made to do all the filming required user input for arrow key use, which meant the cursor came back. I just kept the mouse down in the empty letterbox area and painted black or subtitles over it).
Unfortunately, the overlay system seems to be not without bugs. On rendering the video, the frame-rate of the clips underneath the overlays is spuriously reduced. Alas, I couldn’t find an output format that didn’t suffer from this without sacrificing other quality aspects, so you’ll just have to make do and bloody well enjoy it.