Re the OP question:
The BeerSmith default value is 1.25 qts water per 1 lb of grain in the mash. I mash 5 lbs of grain in a 3.25gal pot to do partial mashes, so using that to scale down I would expect that you can do a partial mash of up to 3 lbs grain combined with 3.75qts of water in your existing pot.
When you pull the grain bag out of the pot, squeeze it like it owes you money to get the extra wort out and you'll still lose at least 0.1gal water / 1 lb grain. My guess is you'll then have less than 3.5 qts of wort in your pot.
Assuming you have 8 qts - 3.5 qts = 4.5 qts of capacity left in your pot and this limits your sparge water volume. You can either do one sparge of 4.5 qts or two sparges of 2.25 qts each. There are an infinite number of additional variations you could do on how to split the sparge volumes. Let the sizes of your other pots decide this for you (at least for now).
After each sparge, squeeze that grain bag again and combine all the wort and sparged water volumes into your original pot. You should be near the limit for what the pot can hold. I recommend your total volume be at least 1 inch below the actual rim of the pot so you at least have a 1-2 second window to react for any potential boil-overs.
If you plan to augment this with DME or LME, you'll need to plan for those volume additions as well so you don't overflow your pot. In my setup, I have to augment with about 1 lb of DME to achieve a final OG in the 1.050 range for a 5 gallon batch.
Lastly, don't trust the advertised volume on your pot. Measure out water into the pot to find out what the real capacity is. Take a wooden spoon and stand it in the pot and notch it at different volumes as you are filling so you can get quick estimates on the volume in your pot as you try this for the first time using the spoon as your 'yardstick'.