PS $16 turbo, tough flop play with 88

This is in the first level of a pokerstars 15+1 turbo SNG. Nobody has done anything that stands out yet so no reads on anyone. Preflop play is easy, my only question is how would you play the flop?

PokerStars No-Limit Hold'em Tourney, Big Blind is t20 (9 handed) FTR converter on zerodivide.cx (http://www.zerodivide.cx/converter)

saw flop|<font color="#C00000">saw showdown</font>

BB (t1540)
UTG (t1420)
UTG+1 (t1470)
MP1 (t1620)
MP2 (t1380)
MP3 (t1700)
<font color="#C00000">CO (t1270)</font>
<font color="#C00000">Hero (t1470)</font>
SB (t1630)

Preflop: Hero is Button with 8/images/graemlins/diamond.gif, 8/images/graemlins/club.gif.
<font color="#666666">2 folds</font>, MP1 calls t20, <font color="#666666">2 folds</font>, <font color="#CC3333">CO raises to t40</font>, Hero calls t40, SB calls t30, BB calls t20, MP1 calls t20.

Flop: (t200) 5/images/graemlins/heart.gif, 6/images/graemlins/diamond.gif, 7/images/graemlins/heart.gif <font color="#0000FF">(5 players)</font>
SB checks, BB checks, MP1 checks, <font color="#CC3333">CO bets t260</font>, <font color="#CC3333">Hero ?

[tigerite]

I've been going over the top in these kind if situations, and it's usually messy. I think it might be a fold.

[jb9]

I say "blech" and fold. Probably call 150 or 175 but not 260.

[bennies]

I agree, in a 1500 chip game I think this is a fold. In an 800 chip thing I don't know...

[pineapple888]

Fold cause he min-raised pre-flop. Gotta think he's protecting a made hand here, and you don't quite have good enough draws to chase.