Sorry - 8" diskette drives are out of my realm of expertise. I've seen them on older IBM AS/400s, but I've never used one on a PC. From what I've heard you can connect some 8" drives to standard PC floppy controllers and use them, but I've never seen it done.
DITU and the other archivers make a binary dump of the diskette into a file. They really don't care what the data is. You tell it how many tracks, heads, and sectors, and it will do the rest.
The OS and diskette drive have to be able to find and read the sectors. If you've got some oddball format that skips sector numbers or has a error in a strategic spot (as many copy protection schemes do), then it doesn't work. Raw isn't quite as raw as you would think .. it just means that the software was able to read the sectors of the disk with no special tricks. Odd sector sizes would also throw it for a loop.
For reading oddball formats on a PC take a look at 22disk. It can read lots of different formats, including ones from CPM machines.
As for the 8" floppy, if you know how it is formatted, you can try to format a 360K or 720K diskette the same way and put the data on that. Those 8 inchers didn't hold very much .. It's basically the same trick I pulled on the Jr when I replaced a 5.25" drive with a 3.5" drive. But that swap is more straighforward, as the only difference was the number of tracks.
Another thing to keep in mind is hard sectoring vs. soft sectoring. I think that PC drives are all soft sectored, so trying to image a hard sectored disk isn't going to work.
Refresh works pretty well - it's trick is just repeated reads. It will attempt to read a sector 12 times before giving up on it. Normally DOS only attempts 3 retries. When it gives up, it does not mark the sector as bad, but it will tell you about it. In that case you should try another diskette drive - slight differences in alignment can save the day ..