I do have MC...
I opened MC6.... inserted a synth into a new project...opened the STAFF VIEW.... which brings up a musical staff view ......and armed the track and hit record and started playing notes at random.
IT DOES WORK ....exactly like you want. As I played, it was showing the notes on the staff.
Select VIEW from the top tool bar, find Staff View, and click it. Be sure you have selected the tracks before doing this. They will pop in to the staff view.... it is possible to add them later but if you select the active synth, it happens automatically.
MC3 is a very old version of MC.... you may have some Operating System incompatibility issues running MC3 on the new OS of newer computers.....then again, it may run fine. I would recommend upgrading to MC6 the box version on DVD since it will have many improvements over MC3. The Sound Center synth alone is worth the cost of MC6.
Anyway, I hope this helps you.
BTW: deleted the project and opened MC4 the oldest MC I have.... it worked perfectly the same there. Joy!