Perflop looks all screwy, somethings gone wrong with the converter there - the BB doesn't 'call $0.10' and act first, and the hero doesn't 'check' the SB :P

Personally, I would have lead out on the flop, you're usually ahead here of most of his ginormous range (70/3). By the looks of things, he has a flush draw +/ a pair or something similar. On the rare chance that this guy shows up here with a made flush, you'll unfortunately always pay him off more often then not, but thankfully this is more than made up for the times he calls you down with a draw so I think its the best line here. Even if he does have the flush, you've still got 4 outs for a house. So go ahead, deny him his drawing odds and bet him down to the river if the 4 flush doesn't hit.

If you are going to check raise, raise more to deny him odds of drawing to the flush. Currently, he's getting something like 2.8-1 to call here, which means he has correct odds should he call.