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Yikes. I'd fold preflop, but at the flop you have to at least call, if not raise. That's a rather big pot for the blinds, you hit top pair with rags that he won't put you on, and the bet at the flop is about the size of his preflop bet.
I'd make that flop bet (or even more) with any hand I raised preflop (AK, AQ, etc.), to represent the high pocket pair and try and win the pot there. If you think that's the case, you should raise and see how he reacts. If you think its a high pocket pair, your implied odds are good to call here, as if an 8 or a 6 hits, he has no reason to put you on that hand.
Plus, if you do call, you should be able to get a lot more information on the turn if another rag hits. If his bet gets a lot larger, you should put him on the high pocket pair. If he bets 50 cents again, I'm thinking he's trying to steal, and I'm reraising most likely.
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