I think 5 pads is way to many to have down at once and that would definately confuse him. If you have a big house put a pad at each end of the house incase he gets caught short and doesn't have enough time to run to the other end of the house. But i wouldn't put down more than 2 pads.
As for training him to go outside, i think that's a great idea if your willing to take him out every time he has to go to the washroom. It's a lot easier and cleaner, i think personally, to take them outside to do their buisness. I think it's kind of confusing if you try to pee pad/outdoor train them. So try to pick one or the other and stick to it.
Good luck !!