1 cup per gallon? Is that a typo? That's a heck of a lot of carbon. C_stowers is the carbon man. I think he uses a cup or two for his system (about 140 - 150 gallons, I'd say). The best way to use it is in a fluidized bed reactor because it makes sure the granules percolate and all of the surfaces of the carbon get exposed. In a sack or fixed canister water develops channels through the carbon such that only some surfaces of the carbon are exposed. At any rate, maybe Chris will chime in. I think he uses seachem matrix carbon. Getting a good acid washed carbon is one of the keys.
I use black diamond as well, but I use far less than 1 cup per gallon. About 50 times less.