I have heard that the Seattle rain reputation is 1/2 myth - that the gray skies are the tough part but that it's not one of the areas of the US with the heaviest annual rainfall. Is that true? I've also heard that the short days can get people down after a while.

Yes, Seattle receives around 35 inches a year, variable over the area and less than most major cities on the continent. We enjoyed a two month drought from August through September. The days are short in the winter and very long in the summer! Overcast skies are common in winter, heavy rain not so much.