Know when to fold'em

The setup: SB is VPIP 8, PF raise 7, aggro factor 8.5 @ 241 hands. This guy is only raising the most premium of hands. He's raising 5x, out of position. Based on a 5x, I'm giving him credit for AA, KK, AK, QQ, maybe JJ. As an aside, I'm reading "Professional No Limit Hold'em" by Matt Flynn, Sunny Mehta & Ed Miller. They have an example in the book about this hand almost which is almost identical. They say that I truly won't know where I am in the hand when the guaranteed c-bet from the villain comes on the flop (actually their example has hero raising and getting RRed from a TAG button). However, if I hit an Ace, Queen or anything else other than a KJT flop, I will have no idea where I am, based on the villain's 8.5 aggression factor. Therefore, a meek fold is in order in this hand to only lose one bet and stop any further loses. The other factor to mull over is the $5.53 effective stack. Agree? Disagree?

Full Tilt No-Limit Hold'em, $0.10 BB (8 handed) - Full-Tilt Converter Tool from http://www.flopturnriver.com

Button ($2.35)
SB ($4)
BB ($2.30)
UTG ($4.22)
UTG+1 ($17.44)
Hero (MP1) ($10.43)
MP2 ($5.53)
CO ($8.72)

Preflop: Hero is MP1 with Ah, Qc
2 folds, Hero calls $0.10, 3 folds, SB bets $0.50, 2 folds

Total pot: $0.30 | Rake: $0

Results:
SB didn't show
Outcome: SB won $0.30