I have seen this exact behavior with large video files. You have 2 basic choices:
1) Use Image Capture (in your Applications folder) to download the video. In IC you can select 'Download Some', see the files on the camera, and select just the ones you want to download. With a file this big I recommend doing one at a time. Set it to Download to your Desktop, and be patient. Ignore the blue Progress bar, as it seems to go from 0 to 100 very quickly, when in fact the process has just begun. It may seem like nothing is happening, but wait long enough and it should complete.
2) Canons do not appear in the Finder, as you have observed. Instead of uploading via the camera, use a USB card reader to mount the card. Then you can simply drag the video files to your Desktop. The Finder seems to copy much more quickly than Image Capture, and its blue Progress bar is much more accurate. Another advantage is that you don't have to worry about the camera's batteries dying during the download.
Either way, once the videos are on your desktop you can import them into iPhoto, then trash the desktop copy.
Regards.