AJs facing a flop raise (.10)

[That Fish]

First NL post. No reads yet.
How are the preflop and flop bets?
Is this a call or a fold on the flop?

Full Tilt Poker
No Limit Holdem Ring game
Blinds: $0.05/$0.10
8 players
Converter (http://www.neildewhurst.com/hand-converter)

Stack sizes:
UTG: $14.90
That Fish: $7
MP1: $12.50
MP2: $4.85
CO: $2.55
Button: $9.65
SB: $6.70
BB: $3.95

Pre-flop: (8 players) That Fish is UTG+1 with J/images/graemlins/diamond.gif A/images/graemlins/diamond.gif
UTG folds, <font color="#cc0000">That Fish raises to $0.35</font>, 2 folds, CO calls, 2 folds, BB calls.

Flop: Q/images/graemlins/club.gif 5/images/graemlins/club.gif 8/images/graemlins/diamond.gif ($1.1, 3 players)
BB checks, <font color="#cc0000">That Fish bets $1.1</font>, <font color="#cc0000">CO raises all-in $2.2</font>, BB folds,

[Sir Winalot]

Reload preflop. I wouldn't c-bet this flop against 2 villains when one is a shortie. Just c/f.