Small pocket on button - situation I think deserves analysis

[CheapFlop]

Really an example of a situation that I think arises often and that I think just as often I misplay, but want line advice.

Basically, holding a small pocket on the button where shorty has limped and you know that raising it up is going to get a call, making the hand postflop trash unless it hits a set (and even then for little profit).

I feel like vomiting at the thought of limp calling on my button, but is this the best line?

Poker Stars - No Limit Hold'em Cash Game - $0.10/$0.25 Blinds - 5 Players - (LegoPoker HH Converter)

SB: $25.05
BB: $14.30
UTG: $26.50
CO: $5.85
<font color="black">Hero (BTN): $49.75</font>

<font color="black">Preflop:</font> Hero is dealt 3[img]/images/graemlins/spade.gif[/img] 3[img]/images/graemlins/heart.gif[/img] (5 Players)
UTG folds, CO calls $0.25, <font color="red">Hero raises to $1.25</font>, 2 folds, CO calls $1.00

<font color="black">Flop:</font> ($2.85) K[img]/images/graemlins/club.gif[/img] 6[img]/images/graemlins/spade.gif[/img] Q[img]/images/graemlins/heart.gif[/img] (2 Players)
<font color="red">CO bets all-in for $4.60</font>, Hero folds

Pot Size: $7.45 ($0.10 Rake)

[Machavelli]

I think raising it is fine but on a flop like that let it go.

[Keys Myaths]

Absolutely standard.

[TheRenaissance]

I dont mind just calling preflop with such a tiny stack limping infront. Get the blinds to come along, and give yourself a chance to big a win pot once in a while - instead of just a tiny one once in a while. Shorty will [censored] you over so many times.

[Grunch]

This hand was played correctly.