Set of Aces Hand

[tap tap tappy]

1/2 NL hand at a local card club, buy in is 100 minimum, 300 maximum. Table is on the looser side as preflop raises of 7-8x the big blind are not moving the limpers anywhere...it is something else to see someone limp for 2 dollars and then call a 20 dollar raise.
My opponent is very loose and aggressive I cannot tell if he is a smart or dumb LAG but he definitely is quite a LAG and has been showing pure bluffs.

No-Limit Hold'em, 2$ BB (10 handed)

MP1 ($200.00)
MP2 ($200.00)
MP3 ($190.00)
CO ($200.00)
Button ($180.00)
SB ($600.00)
BB ($200.00)
Hero ($475.00)
UTG+1 ($210.00)

Preflop: Hero is UTG with A [img]/images/graemlins/diamond.gif[/img] , A [img]/images/graemlins/spade.gif[/img]. SB posts a blind of $1.
Hero raises to $25 Dollars. MP3 calls, SB calls.

Flop: ($76.00) A [img]/images/graemlins/club.gif[/img] ,T [img]/images/graemlins/club.gif[/img],6 [img]/images/graemlins/diamond.gif[/img] (3 players)
SB checks. Hero bets $50. MP3 drops out and SB calls.

Turn: ($176.00) 7 [img]/images/graemlins/diamond.gif[/img] [img]/images/graemlins/frown.gif[/img]2 Players)
SB bets $125.00. I sit and contemplate, I know he does not have the straight from recalling his previous plays and he does not play inside straights from what I have seen. I have ~375.00 left in my stack so I Push the turn here. I say raise all in for 200 more dollars, he quickly calls.

I say to him you don't have the straight, he turns over 7 4 and says no I have a seven and club draw.

River: ($950) 3 [img]/images/graemlins/club.gif[/img] He makes the club flush on the river and takes it down.

He then proceeds to tell me that the reason why he won was because he had a seven and that being that on the turn he bet 125.00 there he alleviates the pressure on himself which I guess I understand but what pressure is it being that I practically put the rest of his stack in play when he is a fairly big dog.

Thoughts?

I know I hate to say this but supposedly this guy is like the best guy in this club and I am now so heartbroken I don't even want to play anymore. After I saw this garbage by the "best player in the house" I don't even know anymore.