What media to use in canister.

Ozymandias is pretty spot on, although I prefer to fill one of my baskets with carbon and a polishing pad on top, thats merely a preference. It does clear up the water nicely. Since its a new canister and you dont have any established bacteria to transfer over from the old filter, I would throw in some Bio-zyme or some kind of bacterial additive to speed up the process. Hope this helps. Good luck.
 
bio balls and bio rings both work great.

I like bio-balls- they've served me well in the tanks I've used them in. But in this situation where its a smaller canister, any small biomedia would be best, as it would force the water to go through it.
 
Just as an update i will be trying this combination.
Bottom basket--Fluval Prefilter cylinders
Course sponge on top of cylinders
Middle basket--SeaChem Matrix Bio Media (white lava rocks)
Top basket --- Fine pad
Any suggestions?? I will be setting this up a few days
 
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