Live $2-$5 Spread Limit - Should I Have Folded Preflop?

[michiganlaw]

Live 2-5 spread limit at Colorado casino. Can bet $2 to $5 on any hand, any street.

Table is very loose, have seen players call pre-flop raises with 8-4o and hit two pair.

UTG limps and calls the $2 blind. UTG + 1 folds. MP raises $5 to $7 straight, Hero sitting MP+1 calls $7 with A [img]/images/graemlins/spade.gif[/img] J [img]/images/graemlins/heart.gif[/img] ; folded to CO who calls, big blind calls and UTG calls...so, 5 way action to the flop.

Flop: A [img]/images/graemlins/club.gif[/img]8 [img]/images/graemlins/heart.gif[/img]9 [img]/images/graemlins/club.gif[/img]
Big blind checks, UTG checks, MP checks, Hero checks, CO (villain) bets $5, big blind folds, UTG calls, MP calls and Hero calls.

Turn: 10 [img]/images/graemlins/diamond.gif[/img].
UTG checks, MP checks, Hero checks, CO bets $5, UTG folds, MP folds, Hero calls (and thinks very hard about raising his OESD and top pair here).

River: J [img]/images/graemlins/spade.gif[/img].
Hero checks, CO/villain bets $5; Hero.......?

Comments on all streets appreciated.