Top-two getting a lot of action on the flop.

[turkkito]

My first try at the Prima 2.5/5 NL game. Both me and the SB have stacks of ~650. I've played maybe 4 rounds with him and haven't seen him in a lot of pots so I assumed he's pretty tight, I've won a few pots without showdowns during that time.

Preflop: Hero is BB with T[img]/images/graemlins/spade.gif[/img], 7[img]/images/graemlins/diamond.gif[/img].
Two calls, SB calls, I check.

Flop: ($20) 7[img]/images/graemlins/club.gif[/img], 6[img]/images/graemlins/heart.gif[/img], T[img]/images/graemlins/heart.gif[/img] <font color="blue">(4 players)</font>.
SB checks, I bet $18, 2 folds, SB raises to $45, I raise to $88, SB goes all-in, I fold.

I'm sure my fold was correct here but I wasn't really sure what I should have done after he raised me. I didn't really like the idea of just calling all the way so I re-raised with the intention of folding if he still raised me but I'm not sure if it was the best play.

Thanks for the comments.