BB donks the flop and I have midpair and a flush draw

[Tito]

Villain's second hand at the table. Really annoying when they do this.

Full Tilt Poker
No Limit Holdem Ring game
Blinds: $0.05/$0.10
5 players
Converter

Stack sizes:
Hero: $9.95
CO: $3.05
Button: $15.15
SB: $4.05
BB: $7.40

Pre-flop: (5 players) Hero is UTG with 8[img]/images/graemlins/diamond.gif[/img] T[img]/images/graemlins/diamond.gif[/img]
<font color="#cc0000">Hero raises to $0.35</font>, CO folds, Button calls, SB calls $0.30, BB calls $0.25

Flop: K[img]/images/graemlins/diamond.gif[/img] 8[img]/images/graemlins/club.gif[/img] 7[img]/images/graemlins/diamond.gif[/img] ($1.30, 4 players)
SB checks, <font color="#cc0000">BB is all-in $7.05</font>, Hero folds, 2 folds.
Uncalled bets: $7.05 returned to BB.

Results:
Final pot: $1.30

Is this standard? I feel like I'm a coinflip at best. What if only BB and me are in the hand? Call then?