Correct AI call?

Guy on the button 42./15.5/2.2... raises most things in thin field from LP. I didn't RR from the blind as figured his R would put us HU (or close to it...) given other limpers. CR'd him on the flop and called is AI RR. Realized set and two-pair possibilities, but couldn't lay this down given his usual MO. Should I have???

BTW... HH converted wrong. He pushed on my CR and I called.

Ultimate Bet No-Limit Hold'em, $.10 BB (8 handed) Hand History Converter Tool from FlopTurnRiver.com (Format: FlopTurnRiver)

MP2 ($6.68)
CO ($17.72)
Button ($8.61)
Hero ($7.75)
BB ($10.81)
UTG ($2.28)
UTG+1 ($9.42)
MP1 ($14.90)

Preflop: Hero is SB with Ahttp://www.flopturnriver.com/phpBB2/...es/diamond.gif, Ahttp://www.flopturnriver.com/phpBB2/...miles/club.gif.
2 folds, MP1 calls $0.10, 2 folds, Button raises to $0.45, Hero calls $0.40, 1 fold, MP1 folds.

Flop: ($1.10) 7http://www.flopturnriver.com/phpBB2/...miles/club.gif, Jhttp://www.flopturnriver.com/phpBB2/...iles/heart.gif, Qhttp://www.flopturnriver.com/phpBB2/...es/diamond.gif (2 players)
Hero checks, Button bets $1.1, Hero raises to $3.5, Button raises to $4.6, Hero raises to $7.

Turn: ($12.70) 6http://www.flopturnriver.com/phpBB2/...es/diamond.gif (2 players)

River: ($12.70) 8http://www.flopturnriver.com/phpBB2/...miles/club.gif (2 players)

Final Pot: $12.70

re-raise preflop and play for stacks as played. You are slowplaying preflop, so don't be afraid of any raises heads up postflop.

RR preflop and get it all in on flop.

Folding would be idiotic, you played it fine.