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CO is loose and passive preflop and quite passive postflop.

Party Poker 1.00/2.00 Hold'em <font color="#0000FF">(6 handed)</font> link

Preflop: Hero is CO with A[img]/images/graemlins/heart.gif[/img], 8[img]/images/graemlins/spade.gif[/img].
<font color="#666666">1 folds</font>, <font color="#CC3333">Hero raises</font>, <font color="#666666">2 folds</font>, BB calls.

Flop: (4.50 SB) 3[img]/images/graemlins/club.gif[/img], J[img]/images/graemlins/club.gif[/img], 9[img]/images/graemlins/heart.gif[/img] <font color="#0000FF">(2 players)</font>
<font color="#CC3333">BB bets</font>, Hero does what and why?

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Well, given that you're quite passive postflop, obviously you call here.

Just kidding. If BB is loose/passive, I think you should fold here. There was a Jason Pohl article that went into this situation in detail in that short-handed play articles pack that was floating around a while ago. He did all of the math and basically concluded that you should fold when a passive player donks into you from their blind and you didn't connect.

Actually, I think he found that if you think you can get a free card from BB by raising, it's marginally profitable to do that, but his scenario involved having two overcards to the flop. Here, even if you hit an eight, it might not be good, so I think you can feel good about mucking.