Fold TPTK here?

$0.50-$1 Stars NLHE 8-handed

Seat was still cold, but after 20 or so hands villian has been very active and aggressive. Relatively new to the NL ring games, so apologies if this is a vanilla question or my play is embarrassingly donkish. Need to know if I should be totally rethinking my NL mindset. Scorch away.

PokerStars No-Limit Hold'em, $1.00 BB (8 handed) converter

BB ($10.50)
UTG ($121.10)
Hero ($167.60)
MP1 ($42.15)
MP2 ($172.35)
CO ($123.90)
Button ($42.15)
SB ($90.90)

Preflop: Hero is UTG+1 with Q[img]/images/graemlins/spade.gif[/img], A[img]/images/graemlins/spade.gif[/img].
UTG calls $1, <font color="#CC3333">Hero raises to $4</font>, <font color="#CC3333">MP1 raises to $7</font>, <font color="#666666">5 folds</font>, UTG folds, Hero calls $3.

Flop: ($16.50) 7[img]/images/graemlins/spade.gif[/img], 8[img]/images/graemlins/club.gif[/img], Q[img]/images/graemlins/diamond.gif[/img] <font color="#0000FF">(2 players)</font>
Hero checks, <font color="#CC3333">MP1 bets $4</font>, <font color="#CC3333">Hero raises to $8</font>, <font color="#CC3333">MP1 raises to $32</font>, Hero folds.

Final Pot: $56.50