5/10: Fold top set?

[AceHiStation]

No real reads on villain. From the 30 or so hands I've seen him play, he seems very loose and kinda nutty. I have been playing a very TAGgish game. Donk call or donk fold?

Party Poker No-Limit Hold'em, $ BB (6 max, 5 handed) FTR converter on zerodivide.cx

MP ($559)
Hero ($1284.50)
SB ($1537)
BB ($707)
UTG ($940.75)

Preflop: Hero is Button with T[img]/images/graemlins/diamond.gif[/img], T[img]/images/graemlins/heart.gif[/img]. SB posts a blind of $5.
<font color="#666666">2 folds</font>, <font color="#CC3333">Hero raises to $40</font>, SB (poster) calls $35, <font color="#666666">1 fold</font>.

Flop: ($90) 9[img]/images/graemlins/spade.gif[/img], T[img]/images/graemlins/spade.gif[/img], 8[img]/images/graemlins/diamond.gif[/img] <font color="#0000FF">(2 players)</font>
SB checks, <font color="#CC3333">Hero bets $88</font>, SB calls $88.

Turn: ($266) 6[img]/images/graemlins/heart.gif[/img] <font color="#0000FF">(2 players)</font>
SB checks, <font color="#CC3333">Hero bets $200</font>, <font color="#CC3333">SB calls all-in</font>, Hero ???