Playing on the bubble with very low blinds?

[adanthar]

I just entered a $30 SNG where, thanks to various misplayed aces, I wound up having 3500 chips and the chip lead with 4 people left *halfway through level 2*. The other stacks were a bit over 2K, 1.5K, and a short stack with 300-500.

Unfortunately, I was pretty shocked and completely unsure of how to play it, and wound up not really doing much all the way to L6. There just didn't seem to be much of a point to stealing 30 or 50 chip blinds, and going up against anyone who could take a large chunk of my stack seemed too risky (especially after the short stack doubled up through me with KK vs. my KQ). I wound up even with the other stack at level 7 and losing a couple of big hands to finish second- not terrible, but I feel like I shouldn't have let it get there to start with.

How does everyone here play in bubble situations where the blinds are tiny compared to stack size?