General Question involving bankroll and paying off fish.

[lsaw2]

I regularily play the 0.50/1 NL on PP, I generally do pretty well, I wanted to play slightly more regularily/properly, ie my bankroll isn't quite big enough for .50/1 (350-400$'s atm) so I dropped to .25/.50NL. For some reason I seem to do alot worse at this level.

How much respect should I give players at this level?
I'm unsure whether to respect them and think that they are capable of making plays/better strategy moves or just to play them, and auto assume they are fish and don't know what they are doing.

Cheers.