Scoring: IMP
This hand posed a couple of different questions. First, does the South hand qualify for an assumed fit preempt if you play them? For my most regular partnership it does. We play 1st favourable preempts very aggressively and partner will not hang you for it. So we would open 2♣ (showing both majors) and partner would probably make a game try which we would reject.
For those the majority who don't open the South hand, West opens 1♠ and North must decided whether to double or overcall 2♥. Although North has values in all the suits besides spades, I agree with the overcall of 2♥. It gets across your 5th heart and makes it easier for partner to raise you with a fit and find the most likely game for your side.
If North overcalls 2♥, then East will make a negative double. Now there's yet another style question for south. How much in terms of values is a raise to 3♥. Yes south has a 2♠ cuebid available. But, note the South hand is not worth very much. The 5 card suit is UNDER West's 5 card opener and 5422 shapes tend not to play that well. Furthermore, if you raise to 3♥, partner might raise to 4 AND you can always back in later with 3♥ if the auction is about to die. So my call would be pass, but some will make the delicate raise to 3.

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