Playing way too tight (10% VP$IP) !!

[alekhine8]

First, the stats (Party $0.50/$1.00):

Hands played: 2,700
Win rate per 100 hands: $2.59

VP$IP: 10.44%
PFR: 6.00%
W$SD: 52.94%
Aggression: 2.61 and 2.01 (including/excluding pre-flop)

I really feel I should be winning more at this level. I am typically playing four tables at a time and only noting other players that make complete fools of themselves.

I compare how many hands I am playing to others and think I'm leaving money on the table by only voluntarily entering the pot 10% of the time. I think I have two main questions:

1) How much respect do you give raises in these weak passive games? I find myself tossing AJo, KQo as well as small/medium pairs to raises. I will add that AQo and AJo are my two biggest losing hands - I definitely need to evalulate how I am playing those in all positions.

Examples [all at 10-player $0.50 / $1.00]:
... You are on the button with 77. UTG limps, EP limps, MP raises.
... You are in the small blind with AJo. EP raises, LP calls two.
... You are UTG+2 with 88. UTG limps and UTG+1 raises.
(I think I fold all three - am I the only one?)

2) Just how 'low will you go' when it comes to limping in MP/LP, especially after previously limper(s)? I will limp in LP with obvious stuff (pairs, suited connectors) when I can, but maybe I am not doing it enough.

I feel I play well enough post-flop given the competition, but I don't want to lower myself to it by playing trash. One-gappers or two-gappers (suited, of course)? Axs? Kxs? Any two face cards?

Just looking to improve my game. I am really starting to focus on limit after playing SNGs/NL and am looking forward to working my way up to $1/$2 soon. Thanks.

If anyone is interested in looking at any HH for analysis or whatever, let me know. I would post but I am thinking more of the hands I'm folding than those I'm playing at this stage.