TPTK on a paired board vs. a tricky player

[Mr. Curious]

300-500 live NL game
9 handed
Blinds are 5/10
Maximum bet is $500 (state law)

Stacks:
Hero $825
MP2 $850
BB $2000

Hero is on the button with AJo

Preflop:
UTG folds, UTG+1 folds, MP1 folds, MP2 calls, MP3 folds, CO folds, Hero bets $40, SB folds, BB calls, MP2 calls

BB is defending his blind and calling because he has a huge stack and has been getting some decent flops. His hand range is quite large, though he would have re-raised preflop with AK or AQ, AA-TT.

MP2 is a tight, aggressive, tricky player. His calling hand range is any pair, any suited connecter, any suited ace. He would have open raised with AA-99 + AK/AQ, though he might have tried for a limp reraise with AA or KK. He will try to push people off their hands and has already check raised with top pair against a preflop raiser's continuation bet.

Flop: J77 rainbow (3 players)
Pot: $120

BB checks, MP2 checks, Hero bets $100, SB folds, MP2 raises to $200, Hero raises to $400, MP2 pushes all-in, Hero calls

[coash]

small stakes...hmm...

Best case scenario is a split pot here unless villian is tilting badly. I can't put him on any hand that doesn't have a seven or at least AJ. Pre-flop he was getting just shy of 3 to 1 on a call when it came back around. . . justifies a call with a suited connector; based on flop play I would say 67 or 78 is very likely and you're drawing mighty thin.

[Mr. Curious]

[ QUOTE ]
Best case scenario is a split pot here unless villian is tilting badly. I can't put him on any hand that doesn't have a seven or at least AJ. Pre-flop he was getting just shy of 3 to 1 on a call when it came back around. . . justifies a call with a suited connector; based on flop play I would say 67 or 78 is very likely and you're drawing mighty thin.

[/ QUOTE ]

At what point do you find the fold?

The check raise meant he had at least a Jack and my re-raise was to take the pot back. Once he pushed, I knew I was beat but couldn't lay it down.

Would the better line have been to call the raise, figuring I am either way ahead or way behind, and try to keep the potential loss to a minimum?