Simply put: The setup you describe will not work.
The Canvas is not designed to play “full-screen” and, on most computers, it will freeze if made too large.
It is also very low resolution, so even if you can get it to play, the quality will be poor and inaccurate, especially if output to an NTSC monitor.
But the good news is that it costs virtually nothing to monitor via FW and any FW camcorder (which is how a basic FCP system is designed to operate).
Monitoring FCP on an external video monitor is as easy as:
Mac > Camcorder > Monitor.
Here’s how to connect it, step-by-step:
1. “Quit” the Final Cut Pro program.
2. Connect your camcorder to the Mac via FireWire.
3. Hook any standard monitor or TV (with a video input) to the outputs on your DV camcorder.
You can use the standard (usually colored yellow) video cable or the “S-video” output from the camcorder if the monitor has one of those kind of inputs.
You should ALSO hook up the AUDIO outputs from the camcorder to the same monitor, or any “amplified speakers” so you can monitor the FCP audio along with the video.
4. Turn ON the camcorder. Switch it to the VCR (player) mode, but don’t put a tape in it (unless you intend to record from FCP to a DV tape.)
5. Turn ON the Video Monitor and set to view the “Video Input”.
6. Open Final Cut Pro on the Mac.
7. In FCP, make sure under the pulldown menu: View > External > ALL FRAMES is set.
You should now see the output of FCP on the camcorder’s viewfinder screen AND the external monitor.
You will also hear FCP’s audio from the speakers that you connected to the camcorder.