1) Yes, you have the wrong adapter. To mount an FD lens on an EF body requires corrective optics (i.e. "glass in it") because the FD lens mount is closer to the sensor than the EF lens mount. i.e. when you put an FD lens on an EF body, the lens is father away from the sensor than it's supposed to be. The optics in the adapter adjust for this.
2) For an EF body, you should just buy the EF 50mm f1.8. (It's only around $100.) The only people who really benefit from buying the FD version instead are mirrorless shooters (e.g. Panasonic GH2) because a) since their cameras don't have mirrors, the lens mount can be moved closer to the sensor, so they don't need corrective optics (which typically degrade the image quality), and b) because FD lenses have manual aperture control which can obviously be adjusted manually, as opposed to EF lenses electronic aperture control which requires electronic connection to the camera.
2a) Having said that, note that the EF 50mm f1.8 is a pain to pull focus with, and auto-focus is noisy, which is why a lot of folks upgrade to the 50mm f1.4.
Full disclosure: I own a Panasonic GH2, Canon T4i and 50mm f1.4 and f1.8 lenses - Mark
I am new to DSLR and just bought a 50mm FD 1:1.8 prime lens (with an adapter ring) for my T2i for shooting video when I tried to focus it everything was a blurry mess and I was unable to see anything till after some trial and error I discovered it was the dreamiest macro lens ever. This had been suggested to me for video use so I'm wondering if I am doing something wrong like getting the wrong adapter. Someone else told me the adapter is suppose to have glass in it but mine is just a metal ring.