Home Poker Tournament that I cannot beat...

[The Legend]

Hi.
My name is Dave, and this is my first post to this forum. I have had incredible success online thanks to the advice of you fine people. I have about 50% ITM and 37% ROI on party 10+1's. However, I have found I cannot win in real life. Now, bare with me, I have only played a home game with friends, never at a casino. Now, these players are absolutely awful. They are loose passive to the extreme.

Now, here is how we play. It's a tournament, winner take all. Each player pays 20 dollars for 100 chips. Usually its only five people, but this week it was seven. It starts at seven o clock. If you run out of chips you can re-buy another 100 for 20 dollars until ten o clock. After ten no more re-buy. Blinds start at 1-2, and every 45 minutes increase to 2-4, 3-6, 4-8, and finally 5-10. Sometimes when 3 way or heads up the blinds are raised to 10-20. And sometimes they are also raised to 20-40 , but thats it. How would you recommend I approach winning this format?

This week I had KK and went all in and got called and beat by AA, and I had AA, went all in, and got called with a K3 offsuit, and got beat when he turned a K and rivered a 3. Now, that is just bad luck I know. But I have played tight aggressive, playing pairs, broadway, and limping with ace anything or greater than K 10.

The problem seems to be that since no one except me knows how to play, they see the flop with almost any hand and quickly two people build a huge stack lead, and I can't seem to overcome it...
I just keep folding the crap I'm dealt and eventually get blinded to death. Well, if anyone has any advice, I will be grateful. If you would like to know anymore of my situation, let me know and I'll be glad to share. I have read so much and studied so much on poker, yet I can't beat these fish who know absolutely nothing. It devastates my confidence. Bottom line, help me please...