Full Tilt $26 6max tourny - flop decent hand from blinds

[yellowdoyle]

Tournament is only in second level, levels are ten minutes. So no real reads, except seat 4 is very loose pf.

Full Tilt Poker Game #2826919385: $14,000 Guarantee (21060847), Table 12 - 20/40 - No Limit Hold'em - 23:15:10 ET - 2007/07/01
Seat 1: Arrival (4,320)
Seat 2: clopoker68 (2,710)
Seat 3: Yellowdoyle (4,908)
Seat 4: sharkn (4,112)
Seat 5: Awall (1,590)
Seat 6: Brendargio (3,150)
clopoker68 posts the small blind of 20
Yellowdoyle posts the big blind of 40
The button is in seat #1
*** HOLE CARDS ***
Dealt to Yellowdoyle [5[img]/images/graemlins/heart.gif[/img] 7[img]/images/graemlins/diamond.gif[/img]]
sharkn calls 40
Awall folds
Brendargio calls 40
Arrival calls 40
clopoker68 folds
Yellowdoyle checks
*** FLOP *** [7[img]/images/graemlins/heart.gif[/img] 8[img]/images/graemlins/spade.gif[/img] 5[img]/images/graemlins/spade.gif[/img]]
Yellowdoyle checks
sharkn bets 40
Brendargio calls 40
Arrival raises to 340
Yellowdoyle folds
sharkn folds
Brendargio folds
Uncalled bet of 300 returned to Arrival
Arrival mucks
Arrival wins the pot (300)

I folded on the flop cause my relative hand strength actually seemed a bit marginal given the board texture, all the limps pf, and the fact I would be OOP the rest of the hand (if I just smooth called). There are about 20 scare cards that could hit the turn as well.

Does anyone else have a different line they like better?