Live $5/$10 at the Wynn, short vs TAG & LAG

[TakenItEasy]

$5/$10 NL live at the Wynn.
BB: ~$1,600
EP: is playing a monster stack ~$12K
Hero: ~$540 short stacked

Laggy regular EP player raises to $40 which is standard for him. I know he is a regular since the staff seems to know him well. In the 1 previous session with him, he played super laggy, maybe 70/60 preflop. Despite his laggy image, he is a good player IMO. 2 calling stations and a trappy player (not involved this hand) have been keeping him in line postflop this session. In Previous session I was playing very TAG and then shifted to LAG about 2 hours after he sat down on my right, so he knows that I can shift styles. While not playing every pot like in last session, he still sees lots of flops either limping or with small raises, probably 35/25. He has been complaining that he is always getting a duece in his hand when folding so he may be just card dead. He appears to be very frustrated this session even though he stacked me for around $1600 early with a set over set.

I call in CO with 9 [img]/images/graemlins/diamond.gif[/img],9 [img]/images/graemlins/heart.gif[/img]. My session image is semi LAG, probably 25/15, although I have tightened up quite a bit since becomming short 2 or 3 orbits ago and expect relevant players to recognize this. While I have had some tough beats and am stuck a couple of K, I have kept my patience and don't feel that I am showing any signs of tilt. I felt that I was ahead of his range but decided to just call with good position.

2 folds. Tight player who happens to be a friend calls in the BB. He is a straight forward bettor, may take small shots but rarely gets too involved without a good hand, doesn't often semibluff. Probably playing 13/8 preflop.

$125, Flop: 8 [img]/images/graemlins/spade.gif[/img],7 [img]/images/graemlins/club.gif[/img],2 [img]/images/graemlins/heart.gif[/img]

BB bets $100, EP pauses for a sec. and calls, I think about a raise but just call.

$425, Turn: 8 [img]/images/graemlins/spade.gif[/img],7 [img]/images/graemlins/club.gif[/img],2 [img]/images/graemlins/heart.gif[/img],6 [img]/images/graemlins/heart.gif[/img]

BB bets $200, EP calls, I just call with only $200 behind.

$1,025, River: 8 [img]/images/graemlins/spade.gif[/img],7 [img]/images/graemlins/club.gif[/img],2 [img]/images/graemlins/heart.gif[/img],6 [img]/images/graemlins/heart.gif[/img],5 [img]/images/graemlins/heart.gif[/img]

BB bets $200, EP folds, I make a reluctant call.

I am most interested in my preflop/flop play but will take comments on all streets.