How Would You Play this PLH Hand?

well the way you read it you are correct. they way i was badly trying to describe it was he figured him for two big cards,so the raise made sense to win it right there rather than letting a big card fall off and ruining the hand. at this point he doesnt know or think his 77 is the worst hand. but when he moved in then he would think its two flush cards and would be getting about two to one on his money. yes, if his range of hands is as you discribed you would be right to fold.