Flopped TP and OESD vs. c-betting lag

Villain is a LAG 37/22/2.5 over a few hundred hands, but hasn't done anything crazy or spewy that I've seen. Honestly he seems like a good lagg, but he's shortstacked so that doesn't make a lot of sense. I'm torn between calling and pushing this flop, is the decision close?

Full Tilt No-Limit Hold'em, $4 BB (9 handed) Hand History Converter Tool from FlopTurnRiver.com (Format: FlopTurnRiver)

SB ($423)
BB ($200)
UTG ($890)
UTG+1 ($125)
MP1 ($161.60)
MP2 ($190.70)
MP3 ($339.20)
CO ($273.50)
Hero ($405)

Preflop: Hero is Button with 7, 8.
2 folds, MP1 calls $4, MP2 calls $4, 1 fold, CO raises to $18, Hero calls $18, 2 folds, MP1 folds, MP2 folds.

Flop: ($50) 5, 8, 6 (2 players)
CO bets $25, Hero...

raise to 125 and call a shove. i dont like calling here at all with obvious FE.

Originally Posted by IowaSkinsFan

raise to 125 and call a shove. i dont like calling here at all with obvious FE.

I agree with this, except I don't think you have to raise so much. 75-100 will do good. You could have the best hand, I don't think you have to blast him out of the pot.