Married to AK?....do you lay this down?

[Leaky Game]

Absolute .50 NL....8 handed.

Hero is MP1 with A [img]/images/graemlins/spade.gif[/img]K [img]/images/graemlins/heart.gif[/img] with $68
Villian is in CO with $98 Villian just sat down, no read whatsoever.

Hero makes it $2 to go, MP2 calls, Villian calls

$6.75
8 [img]/images/graemlins/diamond.gif[/img]7 [img]/images/graemlins/diamond.gif[/img]A [img]/images/graemlins/club.gif[/img]
Hero bets $4, MP2 folds, Villian calls

$14.75
7 [img]/images/graemlins/heart.gif[/img]
Hero bets $9, Villian minraises...hmmmm...Hero calls.

Bad call? Reraise?

$50
8 [img]/images/graemlins/spade.gif[/img]
Great, two pair on the board and an Ace which I've paired.
Hero checks, Villian bets $29.50

Hero???

I thought long and hard about this....do I think the 7s or the 8s helped him? Is he bluffing his missed draw? Flop a set that turned into quads? Normally I'd think I was good because who's calling a 4x pf raise with a 7 or an 8 but I've seen a lot of donks out here at this level.