[M.B.E.]

You've got about 20K, blinds are 1K/2K (I assume there's an ante too), you have AQs UTG at an 8-handed table. Generally you should just push there, hoping to pick up the 4K in blinds and antes. You won't be called very often, and when you are called it will usually be by a smaller stack.

Your play of raising to 5K wasn't too bad, it might have been a viable alternative except that the big blind is the chip leader at your table. Not much chance that he will fold for only 3K more. If BB's stack was 15K rather than 39K, your raise to 5K would have made more sense.

[ QUOTE ]
Hero raises to t5000, UTG+1 raises to t8970, 4 folds, SB calls t7970, 1 fold, Hero calls t3970.

...

Should I reraise PF to try to isolate?

[/ QUOTE ]
That's a difficult question. The SB is showing a lot of strength here by calling a UTG raise and an allin reraise. On the other hand, you said he was loose and passive. My concern is that even if he's got a weakish hand like 77 (which he ought to have folded to the raise and reraise), he's now in for so much of his stack that he might well call your all-in. On balance I think you were correct just to call the additional 3970, but it's close.

Your flop check was good; on the turn when SB bets the rest of his chips you have to fold your AQ despite the pot odds, because you have at most six outs for the main pot, and maybe not even that.