[QBert]

If the game is loose-passive and you are unable to beat it for at least 1BB/hr after the rake, I would work hard on your game before playing any more even at this limit (you have already lost over $800 and may as well experiment at a lower cost). Read these forums, post hands, play micro limit online, read several good poker books. At 179 hours you have probably logged about 8000 hands (do your tables have auto-shufflers? If not, it's more like 5500 hands) which is pretty low for statistical significance. So it's hard to say whether you are a winning or a losing player. But I would say given the table conditions the latter is more likely. So study the game. For the love of God, do not move to a more expensive and skilled game before you have improved yours.

Disclaimer: It may be that you are running bad. I could be completely wrong, it's hard to say without seeing some hands. This is just my initial reaction from reading your post: If you are losing, do not move up in limits.