Capturing video with FCP 3.x

2. To capture video, go into File > Log and Capture If you wish to see the live feed on the preview window, simply press the import/capture button on your Director's Cut to set the unit to 'Capture'.

Press the 'Now' button in the bottom right corner of the window to start capturing the footage.
Once the footage is saved on your hard drive, you can start editing it, by adding transitions, effects and so on.