Picking up where I left off

Tuesday: -$927.10
After losing over $500 in SNGs, I decided to play a couple $2/4 NL shorthanded tables. I had a rough start but then built both stacks to over $1000. Each table had a particular fish who I was gunning for, and after several ups and downs, I got my ultimate shot at a humungous pot. Here's the hand broken down:

Hand #384644715 at table: Table TH 628
Started: Tue Aug 01 23:20:44 2006

kalidonios is at seat 1 with 1291.42 -> Villain. Has been playing back at me all night and calls most all of my preflop raises. He built his stack by a few rivered flushes against other opponents. Picked off a couple of my bluffs but also has paid me off a couple times. Has been playing very weak starting hands.
manu888 is at seat 3 with 680.11
Hialdo is at seat 4 with 509.10
thecortstr is at seat 5 with 892.60 -> Hero. I am in the game for over $800 after a rough start and a few reloads. I eventually built my stack up to over $1000, then dropped down to $892 prior to this hand.

thecortstr posts the large blind 4.00
Hialdo posts the small blind 2.00

Hialdo: --, --
thecortstr: As, Ad -> That is a very nice hand to have in your BB. Time to extract max value.
kalidonios: --, --
manu888: --, --

Pre-flop:

kalidonios: Raise 12.00 -> His typical 3x BB raise, there's no way I am going to slowplay against this crazy guy.
manu888: Fold
Hialdo: Fold
thecortstr: Raise 76.00 -> I decide to raise him over 6x the size of his raise. I don't want to give anything to him for a cheap price. If he wants to play, he is going to pay.
kalidonios: Call 76.00 -> I was expecting a fold, but a call is OK. Let's evaluate the flop.

Flop (Board: Kd, 7c, 8d): -> Not a horrible flop. There is a diamond flush draw out there now. Based on his play, I can imagine him having AK, in which case this is an optimal flop. The pot size is currently $154.

thecortstr: Bet 188.00 -> I overbet the flop, almost signalling him the strength of my hand. If he pushes, I will have a big decision to make.
kalidonios: Call 188.00 -> He just flat calls. I do now have the feeling he has something like AK.

Turn (Board: Kd, 7c, 8d, Qs): -> The Q of spades, potentially a dangerous card if he is playing KQ or QQ.

thecortstr: Bet 108.00 -> My connection timer only lets me get to $108 before I need to release the trigger, otherwise I would have timed out!
kalidonios: Raise 300.00 -> He raises after thinking for a few seconds. I just can't let go of my hand, although by now my gut feeling is not very great.
thecortstr: Call 300.00 -> I make the call after thinking a while. At this point I think it's a 50/50 of whether or not I am ahead.

River (Board: Kd, 7c, 8d, Qs, 8s): -> That is a fantastic card because there are NO straight possibilities and NO flush posssibilities. Furthermore, if he was playing KQo, I have now re-sucked out and taken the lead again.

thecortstr: All in -> I am pushing all in for $332 as a value bet.
kalidonios: Call 332.60 -> He calls without contemplating very long.

Showdown (Please don't read this if you have not gone through my thought process already. The results are in white font, highlight below to see the cards):

thecortstr shows: As, Ad (two pair, Aces and Eights)
kalidonios shows: 8h, 7d (full house)

Mainpot:
kalidonios wins the pot of $1792.20 with full house

(3.00 rake were taken for this hand)

I do my realize that having one pair, which is really all that I had throughout the hand, is not a very good hand to commit so many chips with. However, the other contributing factors in this situation really led me to believe I was ahead. This is not a bad beat post, but rather I am interested to see what you all would have done if you were in my shoes during this hand. Please help me out and leave a comment, thanks!