Squeezing after limping

[CityFan]

PokerStars No-Limit Hold'em, $0.05 BB (6 handed) internettexasholdem.com

Hero ($8.80)
Button ($10.50)
SB ($12.45)
BB ($5.22)
UTG ($8.43)
MP ($7.02)

Preflop: Hero is CO with 8[img]/images/graemlins/heart.gif[/img], 8[img]/images/graemlins/club.gif[/img].
UTG calls $0.05, MP calls $0.05, Hero calls $0.05, <font color="#666666">1 fold</font>, <font color="#CC3333">SB raises to $0.37</font>, <font color="#666666">1 fold</font>, UTG calls $0.30, MP calls $0.30, <font color="#CC3333">Hero raises to $2</font>

My image is probably quite LAG, although I've had the cards. Lost one big pot through my own stupidity.

All players seem pretty solid - I'm at the wrong table really [img]/images/graemlins/grin.gif[/img]

Who likes the squeeze? What about a raise first time round?