Grab it from the Effects browser and drag-drop it on your clip. Once you've done that, a panel (as in the attached image) will appear in the Video inspector in the Effects section (top of the list). You will start there and mouse over "Gaussian" and where the mask icon appears, click on it and Select Add Shape Mask from the popup menu. To add a keyframe, mouse over the "Shape Mask" layer that appears at the bottom of the pane and a yellow diamond shape will appear - click on that diamond to initiate keyframing. Move the playhead to different times (use the shift-right arrow to advance the playhead 10 frames at a time) and all you need to do is grab the shape's control in the view to a new position. Any changes in the shape's size and shape (circular, oval, rectangular, etc.) are also recorded as keyframed changes. You can pretty much add as many shape masks as you need. The "active mask" for editing will have an onscreen control. You activate any mask in the viewer by clicking on either the layer in the inspector, or inside the area of the shape mask in the viewer (if any of them are already selected in the viewer).
The default mask is a circle. You can change the size by clicking anywhere on the "path" and dragging to a new size. There is also a "feather ring" that operates the same way. The difference between the two paths is the actual bounds have green dots on the path to control the size. There is also a small white circle near the top center. Dragging on this control will change the shape from a circle to a rectangle or round rectangles "in between" the extremes.
You should have a relatively easy time adapting to the interface. And like I said earlier, this feature is available on almost every Effect in FCPX (it was previously exclusive to the Color board/Color Correction effect.) So, if you'd like to use a different blurring effect, take your pick.