Big draw, lots of action in front

Full Tilt No-Limit Hold'em, $1 BB (9 handed) Hand History Converter Tool from FlopTurnRiver.com (Format: FlopTurnRiver)

Button ($100.20)
SB ($60.85)
BB ($74)
UTG ($111.50)
UTG+1 ($99)
MP1 ($17)
MP2 =#A500AF(Villian)/ ($99)
Hero ($100.80)
CO ($100.40)

Preflop: Hero is MP3 with 5, 4.
UTG raises to $3.5, 2 folds, MP2 =#A500AF(Villian)/ calls $3.50, Hero calls $3.50, 2 folds, SB calls $3, BB calls $2.50.

Flop: ($17.50) 7, 9, 3 (5 players)
SB checks, BB checks, UTG bets $8, Villian raises to $24, Hero ???

Also, should I have just folded preflop, looking to only play SC's in limped pots?

Also, should I have just folded preflop, looking to only play SC's in limped pots?

I don't think so. It really depends how nitty the utg raiser is and how likely he is to pay you off.

After the flop I may just fold because the liklihood of being up against a set/bigger flush draw is just so great.

Pre-flop is a little loose only because you still have 4 players to act. Easy call on the Button.

I would make a weak fold here because Villian probably has you crushed with a set or bigger flush draw barring a read that his range is too wide to fold.

Pre-flop is fine given stack sizes and position. You have to fold this, there is too high of a chance of a set or a FD+overs. You're most likely drawing to three outs, barring the board doesn't pair.