Canon HF20 - Issue w/ Log and Transfer in FCE

I just bought Final Cut Express 4, How do you know if you have the most up to date version? How do you upgrade?
The Video shows up, but it WILL NOT "log and transfer" I have tried to drag it down and drop it in and it acts like it will process it, but it will say 1 Clip Queued - Idle, The status then shows up as a Red Octagon with an exclamation mark.
I will do anything for answers,
the only way I can get video into fce so far is by uploading it to imovie then importing it in...
ANY Help- PLEASE!!!

Perian = I do not have that downloaded. Should I?
The only way I could get video into FCE is through importing it in. When the video plays in the canvas, the video is huge and I only get a portion of the screen....It looks really zoomed in. I'll gladly paypal you anything if you can help me through these beginer issues.

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