I've used Vista since around beta...

Never had problems with Fraps or with music (WMP11 and/or Zune, which is just slimmed down WMP).

I find dual-booting two OS'es to be the best way to figure stuff like this out -- particularly since it sounds like you already have the license. Then, when I'm sure everything is working hte way I need it to, I just reformat the alternate OS's partition and have a dedicated partition for my music/movies/etc.