Raised holding two pair on the flop (Bellagio 5-10)

[maltaille]

Hi all, looking for a line check on this hand, perhaps some advice on my reads. Live - the 5-10 at the Bellagio, late Sunday night (who said this game was full of tourists? Six hours at the table, I'm the only tourist I see!) - so no hand history, but I'll do what I can to make it readable.

Villain is a typical live low to mid-stakes player - tight, limp-calls a lot, hasn't made an obvious play in the three hours I've been at the table with him, nothing very out of line, won probably 2/3rds of the showdowns he's gotten to, but hasn't won any big pots. Only unusual play has been three large button raises after several limpers - 6 limpers, he'll raise to $90, for example. He's done it three out of four times he's been in that situation, but never been called. Table has been quiet and tight, though not ridiculously so. One stack larger than mine, couple others similar size, only one or two people that I'd fly into my usual game, rest standard.

Stacks:
Hero: ~$2300
Villain: ~$1300

I'm in the BB, 4 limpers, the SB completes, and I check with 8[img]/images/graemlins/diamond.gif[/img]3[img]/images/graemlins/heart.gif[/img]. Flop comes:

10[img]/images/graemlins/diamond.gif[/img]8[img]/images/graemlins/heart.gif[/img]3[img]/images/graemlins/diamond.gif[/img]

Pot is $60.

SB checks, I bet out $50, expecting a call from a weak top pair or a flush draw, but more likely a fold from everyone.

Pot is $110.

Instead, two folds, then the villain in the CO raises to $150. Two folds to me. I think for a while. I'm thinking anything from he could be testing how strong my top pair is, maybe a flush draw with overcards (though I haven't seen anything like that from this player, that's just based on the stakes), through to a set. I'm not thinking overpair - he's likely to have raised, based on his previous play - and I'm not thinking he's making a play.

Pot is $260.

I don't want to fold, because I think I'm ahead of at least 50% of his range (albeit not that far ahead of a lot of it). I don't want to call, because then I have to fold on any diamond, and most overcards could potentially make him a better two pair.

So, I reraise $200 more, $350 total. I want to see where I am, hopefully convince him I'm serious and close the pot.

Pot is $460.

No dice. He pushes, I narrow his range to a set and insta-fold.

Standard? How's my analysis? Is the flop reraise a reasonable play, or is a set likely enough that I'm just dumping chips? Can I find out where I am a little cheaper, perhaps a $100 reraise instead of a $200 reraise? Thanks in advance for any thoughts!