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From eBay's Help pages:
Offer free shipping. If we can confirm that a buyer chose your free shipping option, you'll automatically receive a 5-star shipping and handling charges rating, plus you'll attract new buyers, and your listing may receive more visibility in search.
http://pages.ebay.ca/help/feedback/detailed-seller-ratings.html
"if you only showed free shipping to Canada?"
This thread deals with the 5 star availability with "free shipping"
FVF on shipping is another story. Listing "free shipping to Canada" if a seller lists on eBay.com will not work for that purpose.
"domestic" means the shipping charge on the site where the item is listed. If listed on eBay.ca, then "domestic" means "free shipping within Canada". If listed on eBay.com, then "domestic" means "free shipping to the USA".
Two different systems with sometimes different results.
"he rules regarding 5-star DSRs and FVF"
You have to take it one at the time. It is very easy to confuse the two programs. They are not related.
Where a seller is registered is irrelevant.
Where an item is listed (eBay.com or eBay.ca) is relevant. The site where the item is listed becomes "domestic" (regardless of your location)
DSR rules are relatively simple: you offer "free shipping" and you get "5 star" if the buyer was not charged shipping. Now, you may offer "free shipping" domestically and a small charge outside the domestic market. In such instance, the buyer is free to rate you on "shipping charge" as the buyer sees fit.
For FVF purposes, it is different. If you offer "free shipping" domestically (first shipping option) and the shipping charge is clearly shown in the shipping section of your listing to the location of your buyer, then no FVF will be charged on the shipping charge.
I wish I had more time to elaborate but Mary just called me for dinner (chicken pot pie tonight!) 
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From Pierre's post:
[...] and the shipping charge is clearly shown in the shipping section of your listing to the location of your buyer [...]
I'm wondering if this may be the reason you didn't get the auto 5-stars on that particular transaction. Where was the buyer located? Was he possibly using an eBay site that didn't display the free shipping?
EBay has been so glitch-riddled over the past few months that it's hard to know what causes these issues. EBay's CS usually doesn't know more than we do. 
" Not sure how is it possible to leave low rating for free shipping"
If "free shipping" was offered in the listing and the buyer received "free shipping" that buyer cannot leave DSR for "shipping charge"
He may leave DSRs for shipping time.
Yes, indeed. All very valid comments!
And here's one particular part of those requirements that's easy to overlook, and that may be difficult to achieve when shipping to some parts of the country (let alone outside Canada) unless you're using Xpresspost:
"Tracking data must show the package as having a status of "delivered" with a delivery date within 4 days of payment clear."
What it boils down to in my mind is that those automatic 5-star DSRs for shipping time are really only possible on items of higher value, going by the most expensive shipping means to places that aren't far flung, for parcels that you get out the door almost immediately. So not as easy a grade to make as it may appear.
(I think it's easier to concentrate on getting the "free shipping" automatic 5 star DSRs).
