In the primary, put your fruit in a mesh bag and do the primary in a food grade bucket, not a carboy.
As for displacement, if I am adding fruit to the primary, my recipe uses honey, fruit, and enough water to bring the total volume up to X. I target a initial volume higher than what I want in my carboy for bulk aging. The amount of the increased volume needed depends on the type and amount of fruit, and how much lees you expect. For example, peaches produce a LOT of sediment, while most berries produce far less. Generally I would aim for 1.5 gals initial for a 1 gallon test batch, or 4 gals initial for a 3 gal. batch.
Once I add the fruit (frozen, thawed, mashed) and given it a few hours to stabilize, I check the SG to see if it needs more honey. Once the SG is right, I add the yeast and nutrients.