WinEQ 2 should be fine, and provides both video capture and FPS limiting. To my knowledge, there has not been a World of Warcraft ban from using WinEQ 2 (no reports of it have been posted) -- however, it could happen if Blizzard decides to ban for it. WinEQ 2 has been in use with World of Warcraft since WoW was in beta.
Inner Space has a much higher chance of banning, with or without ISXWoW. Due to recent aggression from Blizzard, Inner Space will not allow you to run WoW without having ISXWarden to protect you from detection. There is no public stance on this from Blizzard, but I do believe that while they frown upon usage of Inner Space itself, they have generally not banned for it alone -- they certainly COULD if they wanted to. When ISXWoW is in the picture, there is no question whether it is bannable or not
The bottom line is, it is Blizzard's sole discretion whether to ban for usage of WinEQ 2 or Inner Space. If they decide to ban for WinEQ 2 some day, there's nothing preventing them from doing so. However, I believe that the relevant people at Blizzard have played other MMOs including EverQuest, and have probably used EQWindows or WinEQ, and are well aware that as a window manager, it is not a threat to their game.
