TPTK flop play

I'm trying some 50nl on party to warm up for my trip to vegas next month. My normal game is 1/2 LHE short handed, so I'm unclear on a lot of NL ring concepts such as applying the proper amount of aggression post flop. So here is a hand I've got some doubts on.

Villion has been limping very loosley and has shown two bluffs in the half hour I've been at the table.

Party Poker No-Limit Hold'em, $ BB (10 handed) FTR converter on zerodivide.cx

CO ($76.65)
Button ($32.40)
SB ($132)
BB ($47)
UTG ($11.65)
UTG+1 ($43.90)
UTG+2 ($55.30)
MP1 ($36.75)
Hero ($52.60)
MP3 ($42.75)

Preflop: Hero is MP2 with A[img]/images/graemlins/club.gif[/img], T[img]/images/graemlins/heart.gif[/img]. SB posts a blind of $0.25.
4 folds</font>, Hero raises to $2</font>, 1 fold[/i]</font>, CO calls $2, 1 fold</font>, SB (poster) calls $1.75, 1 fold</font>.

Flop: ($6.50) T[img]/images/graemlins/club.gif[/img], 8[img]/images/graemlins/diamond.gif[/img], 7[img]/images/graemlins/diamond.gif[/img] (3 players)</font>
SB checks, Hero bets $5</font>, CO raises to $10</font>, SB folds, Hero raises to $25</font>, CO folds.

Final Pot: $41.50