[iron81]

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Why would you raise rather than call?

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Because Seb likes to spew. His hand looks pretty, but he is rarely significantly ahead here, his oppoents have good 1 card draws or are pat. If you jam there when your opponents are pat, you're putting money in behind.

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And as for my question counting dead outs, we know that an approximate rule of thumb is to discount each rank by a half out when heads up, how does this translate to multiple opponents, or is the pot big enough and my draw strong enough that I can pretty much ignore this sort of thing?

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Definately don't fold, you can ignore dead outs here.

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Another general question. Say on the 2nd draw, BB stood pat and I drew an 8 for an 87532 and bb kept up the aggression. What would your plan for the rest of the hand be?

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I would call behind and pat. The 3 bet pre-draw indicates that he was smooth going in, so there is an excellent chance he has you beat. However, he could easily have a 9 or 876 that you don't want him to break. If he pats and you come out firing, he'll know his hand is no good and break it. You want him to stay pat because if he pats that hand he's drawing dead. You also lose the minimum when he has the nuts.