awkward spot with overpair

This dude was a loose 54/7...this is a tuff spot, im not sure if I should raise the flop, call the flop, or fold the flop. He was such a loose player (54/7) it was a tough fold.
Also he was a smalleer stack so how do you go about this?
By the way the bison converter is a pain in the ballz so im just posting this as is.



***** Hand History for Game 3288546118 *****
$25 NL Texas Hold'em - Friday, December 30, 21:43:32 EDT 2005
Table Table 66468 (Real Money)
Seat 7 is the button
Total number of players : 10
Seat 1: wagnes ( $34.03 )
Seat 2: crazy2009 ( $33.70 )
Seat 3: BarthVader ( $15.30 )
Seat 4: peanutbud22 ( $15.15 )
Seat 5: Liquiddan2 ( $6.40 )
Seat 6: philspec ( $32.68 )
Seat 7: CB0019 ( $34.85 )
Seat 8: Scarface33C ( $45.13 )
Seat 9: dawgbreath ( $39.32 )
Seat 10: roundmound ( $31.10 )
Scarface33C posts small blind [$0.10].
dawgbreath posts big blind [$0.25].
>You have options at Table 67044 Table!.
philspec is sitting out.
** Dealing down cards **
Dealt to Scarface33C [ 9c 9s ]
roundmound folds.
wagnes folds.
crazy2009 folds.
BarthVader folds.
peanutbud22 raises [$0.85].
Liquiddan2 folds.
CB0019 folds.
Scarface33C calls [$0.75].
dawgbreath folds.
** Dealing Flop ** [ 5c, 7h, 3c ]
Scarface33C checks.
peanutbud22 bets [$3].
Scarface33C calls [$3].
** Dealing Turn ** [ Kd ]
Scarface33C checks.
peanutbud22 bets [$5].
>You have options at Table 69159 Table!.
>You have options at Table 65119 Table!.
Scarface33C folds.
peanutbud22 does not show cards.
peanutbud22 wins $12.60