Good or bad laydown?

[DanTheCardMan]

Playing NLHE 25 on PP

Table is loose aggressive preflop, tight aggressive postflop.

I'm EP+1, stack ~$29 dealt A[img]/images/graemlins/heart.gif[/img]8[img]/images/graemlins/heart.gif[/img] and call expecting to get raised. Folded to MP (who raises to $1. CO ~$14 calls (appears aggressive but no good read on him). SB folds. BB calls.

Flop comes 876r. BB checks. I bet the pot, MP folds, CO goes all-in, BB folds.

At this point I'm not sure what to put him on. Looking back on it I'm pretty much convinced he was betting with overcards. I doubt he had flopped a str8 or hit a set, because he would have wanted to milk me. Also thinking 2pr as 76 or 87 would be good hands to play late. Or he could have had 98, going all in with top pair and a good draw.

Since I didn't have a good read and couldn't put him on a hand I folded. Did I do the right thing here? Or should I have pushed ahead with my TPTK, calling $7 to win $17?