NL 100 turned set vs nit

[starkwired]

Villain is 13/6/2 over decent sample. Preflop is horrible, yes I know. But I'd never seen him limp UTG, ever (and I've played a significant amount with him), so frankly I didn't know what to think. Regardless I realize I should have raised.

Poker Stars, $0.50/$1 NL Hold'em Cash Game, 6 Players
LegoPoker Hand History Converter

UTG: $127.55
MP: $35.50
CO: $76
BTN: $109.75
SB: $59.35
Hero (BB): $126.25

Pre-Flop: 9[img]/images/graemlins/club.gif[/img] 9[img]/images/graemlins/spade.gif[/img] dealt to Hero (BB)
UTG calls $1, 4 folds, Hero checks

Flop: ($2.50) 5[img]/images/graemlins/spade.gif[/img] J[img]/images/graemlins/heart.gif[/img] 8[img]/images/graemlins/diamond.gif[/img] (2 Players)
Hero checks, UTG checks

Turn: ($2.50) 9[img]/images/graemlins/diamond.gif[/img] (2 Players)
<font color="red">Hero bets $2</font>, <font color="red">UTG raises to $10</font>, <font color="red">Hero raises to $40</font>, <font color="red">UTG raises to $126.55 and is All-In</font>

Do I have to call and just feel really gross about it?