How to create a simple circle crop in FCP7?

I have two separate videos and basically I want one of them in the background and then the other on top of it with a circular crop. Anybody know a way to do this?

Put your background on V1.
Go to the Browser and click the Effects tab.
Go to Video Generators > Shapes > Circle. Place this on V2.
Put the video you want to crop on V3.
Right click on V3 and choose Compostite Mode > Travel Matte Luma.
A double click on V2 will send it to the Viewer, where you can adjust the size whilst observing the adjustment in the Canvas.

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    *reward for useful answers*</b>

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