Play against the big stack bully

[Copernicus]

Its about an hour and half into a B&M NLHE tourney with rebuys/addons. After the break (rebuys/addons are over) a new player comes to the table with a stack of $4000 or so, and bullies the table, raising almost every hand, only going to showdown once when he lost a few hundred with AJo to a pair of 10s.

I have about $1,100, well above the $400 or so average in a field of 80 or so, down from 95. Blinds 25/50 I'm in the big blind with JJ, folded to him in the cutoff, he limps, button folds, small blind (smallish stack) completes, I raise to 150, he calls, small folds. Pot is $350.

I flop top set, but board is all diamonds. I bet $250, he moves me all in, I call putting him on overcard(s) and maybe a flush draw, which was correct (Kd,Tx), he spikes a diamond on the river for the flush.

I think the $100 raise is right, since I'm pretty sure that is enough to isolate me against the big stack.

Is the $250 bet on the flop too small? Do I fold to the all in since my stack is still well above average, even though I'm probably a 2/1 favorite?

Thanks
Cop