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i don't think you should raise more than $1 pf. $1 is good. at most i would say $1.25
you shouldn't be worried about CO at all. he's a tiny stack. he's not even in the hand IMO. let him get all his chips in. he could easily have TP with a wide range of kickers or even a worse hand.
SB is the problem. if you know SB will check a strong hand on the river. then you should probs check. if you know he is loose/passive and could have AQ/KQ, etc. then you should bet the river.
i think you should probably bet the river here. i don't play on stars though. i know that on pokerroom you are definitely getting calls from players with weak hands on the river. but apparently stars is a higher level of play
i don't agree with your advice mixchange. it sounds to me like our a loose player. i think you should make your standard preflop raise 4xbb + 1xbb for each limper. if you're betting 8xbb pf you won't get much action and when you do you'll be beaten. and players can afford to wait for a good hand if you're raising so much pf.
your strategy might work against weak players at the lower stakes. but against stronger players, you'll get punished for overbetting a lot preflop. even at the lower stakes you'll make more with normal sized bets.
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