hand vs excellent player, limit satellite

Hi guys, I'd like to post a hand from a live limit satellite I recently played in. I know that this is a tourney hand, but I believe that responses will be better here since it was a limit game.

First place is a 2006 WSOP main event entry, all other finishes are worth much less. There are around 700 entrants that compete in different rounds. Tonight is a round 1 that began with 14 people. 4 remain, and the top 3 advance to the next round, to compete against other survivors. Blinds escalate very quickly in this structure. This hand was played live, the cards, chips, and action are the best I can recall.

This hand the blinds are 80/160, so this is a 160/320 game right now. I am the button with around 5k in chips, and the BB has around 5,500. UTG is the small stack with around 1k, and SB has around 2.5k.

UTG folds, I have QsJh and raise. SB re-raises to 480. BB folds, I call.

Pot: 1,120
Flop is Q-8-2, all clubs: villain bets, I raise, he re-raises. I call

Pot: 2,080
Turn is 6h: villain bets 320, I … ?
Villain has around 400 chips remaining after his turn bet.

Villain and I know each other, he introduced me to 2+2 and internet poker. He is unquestionably the better player, and we both know it. I’ve often asked him for help with my own game. We have played each other in the Party 30/60 game, but this is the first time we’ve played together live. At the full ring 30/60 he and I both have a similar play style (TAG) and PT stats of something like 17/11/2 . We’ve never played shorthanded with each other before.

What do you think is the correct play here? Anyone play the flop differently?