[shoeman]

I'm not the most experienced player but I have been playing $10 SNGs for a while and I'll give you some advice in general.

First few blind levels

Raise in Early position to 4xBB plus limpers. If anybody re-raises, push all-in.
Late Position. Raise 4xBB plus limpers if no raises. If there is a raise in front of you, re-raise to about the size of the pot or raise all-in if more than 1 person calls or the raise if fairly big. No need to get fancy at the $10 SNGs.
If the flop is non-connected, rainbow, than a check raise all-in is OK. Otherwise I suggest a strong bet or all-in on the flop. If you flop another A, than a slowplay is OK. Just be careful.

50/100 Blind level and UP

Make sure you get another stack to commit chips. Min-raise in early position to get callers. Re-raise all-in to any raise. Push all-in right away if you are short stacked.

There are really only 2 times I won't raise with AA at a $10 sng. Heads up and in the small blind when everybody folds.

I realize that you don't want to just win the blinds at 25/50 with AA. But you really need to raise to limit the field. Immediately raising all-in as you said probably isn't the right answer but a raise to 150-250 is what I would have done. If the guy still calls with KQ and wins, thats just the way it goes sometimes.

Keep in mind that this is just general information and a whole book could be written on how to play AA. I'd be interested to see what others opinions are?