What to do with this flop raise

[GooperMC]

25 PL Omaha Hi/Lo (8 handed)

Hero ($25)
BB ($43.56)
UTG ($41.22)
UTG+1 ($31.17)
MP2 ($28.50)
LP1 ($9.75)
LP2 ($23.52)
CO ($24.15)
OTB ($15.70)

Preflop: Hero is in SB with 5[img]/images/graemlins/spade.gif[/img] 8[img]/images/graemlins/spade.gif[/img] 2[img]/images/graemlins/spade.gif[/img] A[img]/images/graemlins/spade.gif[/img]
<font color="#666666">(5 folds)</font>, OTB calls (0.25), SB calls (0.15), BB checks.

Flop: <font color="#009933">($0.75)</font> Q[img]/images/graemlins/heart.gif[/img] 4[img]/images/graemlins/diamond.gif[/img] 3[img]/images/graemlins/diamond.gif[/img] <font color="#0000FF">(3 players)</font>
<font color="#FF0000">Hero bets (0.75)</font>, BB calls (0.75), <font color="#FF0000">OTB raises (3.75) to 3.75</font>, Hero???

FYI I was not involved in this hand.

A couple of questions:
1) Do you raise pre-flop?
2) Do you re-raise the flop?
3) How much fold equity do you think a re-raise would has?