I was trying to make a few video's using fraps, and while I was uploading my second video to YouTube I listened to the first one in windows media player to find out that the audio captured was my mic... So it was a few clicks, kinda funny, but not what I wanted!

Questions is! What do I do in fraps to make it record in game sound and not my mic

hmm turn your mic off? :p or just use ur speakers..

you will need to play with your settings but if you click the "Movies" tab and you will see your "Sound Capture Settings". I have listed:

"Record Win7 Sound"
"Stereo"
"Multichannel"
"Record External Input"

change the settings and find which one best suits your needs.

Like camel was saying, uncheck the record external input... That should be your mic. The older versions... I forget, but it's a simple fix when you know what to look for.