Yes, the software is frame-accurate. I've tested a movie file and extracted its contents to MPEG file format. Everything remained the same because I've also used the options As Original which means that it will preserver quality (bitrate, FPS, codec, etc).
However, this version of the software isn't available anymore. On the official website, the software's new name is Kate's Video Toolkit: http://www.fakewebcam.com/Free-Video-Toolkit.asp