More often than not you will be winning this hand against opponents with the likes of JJ or lower, KQ, KJ etc, which means you are correct to play it.

Some people may not play AQ so strongly in level 2, but witth your position there isn't a thing I would do differently.

800 chips is more of a gamble/luckfest or whatever, but as long as we are maximising the best of it there is no problem. I would say this is a good example of doing this.