It all depends on how the big stack is playing. 4-handed with high blinds, KJo on the button is not that bad but the situation where you're just out of the money makes it bad to raise with. This is a hand that I would limp or fold with, and it all depends on what I think he'll do. If you limp and he raises big at you, then fold and you'll know to not limp at him. The key is to try to keep the pot small, and it makes it much harder for the other guy to try to bluff you out when he has to risk so much to win so little.

I would only raise here if and only if I knew that there was a very good chance that the guy would fold. The problem with raising is that if he calls, you commit yourself to the pot when your chips are that low, so you can't let go of top pair with any decent kicker. Imagine if the pot was only 500 because you limped and he called. Would he bet hard if he flopped 2 pair? If he does, then you can fold without question. What if he bets weak? Then you can call without question.