NL25 - 88 on button vs SB min re-raise

[reemas]

Opponent is 46/14/.8 after about 40-50 hands. Very confused on this hand. Please break down all streets and justify your reasoning.

Poker Stars, $0.10/$0.25 NL Hold'em Cash Game, 5 Players

Hero (BTN): $30.60
SB: $22.85
BB: $25.80
UTG: $22
CO: $28

Pre-Flop: 8[img]/images/graemlins/diamond.gif[/img] 8[img]/images/graemlins/heart.gif[/img] dealt to Hero (BTN)
UTG calls $0.25, CO calls $0.25, <font color="red">Hero raises to $2</font>, SB folds, <font color="red">BB raises to $4</font>, 2 folds, Hero calls $2

Flop: ($8.60) 4[img]/images/graemlins/heart.gif[/img] 7[img]/images/graemlins/spade.gif[/img] 7[img]/images/graemlins/club.gif[/img] (2 Players)
<font color="red">BB bets $8</font>, Hero ???