Was this a bad play?

Full Tilt Poker Game #_: $20 + $2 Sit & Go (_), Table 1 - 20/40 - No Limit Hold'em - 19:54:01 ET - 2007/07/13
Seat 1: hero (2,825)
Seat 2: (1,245)
Seat 3: (4,220)
Seat 4: (710)
Seat 2 posts the small blind of 20
Seat 3 posts the big blind of 40
The button is in seat #1
*** HOLE CARDS ***
Dealt to hero [Ah 5h]
villain calls 40
hero raises to 160

Yes, it was a loose raise, but we were 4 handed and I'd been very tight.

Seat 2 folds
Seat 3 folds
villain calls 120
*** FLOP *** [3s 5c 7d]
villain bets 550, and is all in

So he limp-called before the flop. Classic tell of a small or mid pair. At the time, I didn't pick up on it. Now he jumps for his last 550 chips, with over 300 in the pot already. I at least have a pair, and if he's bluffing with crap, then I've got him beat. If he has a better hand than my pair of 5s with an ace, then I'm still in good shape overall. I decided to risk that he was just pulling a stop-n-go with any two cards.

hero calls 550
villain shows [8s 8c]
hero shows [Ah 5h]
*** TURN *** [3s 5c 7d] [5d]
*** RIVER *** [3s 5c 7d 5d] [3d]
villain shows two pair, Eights and Fives
hero shows a full house, Fives full of Threes
hero wins the pot (1,480) with a full house, Fives full of Threes
villain stands up

At this time he starts lambasting me in the chat window as being a donkey.

I called him because he was short, and because I had something and could afford it. If I either beat him or sucked-out, then we'd get that one step closer to the money.

It wasn't the proudest call I've ever made, but I think it was, all in all, more correct than incorrect. What do you all think?

*** SUMMARY ***
Total pot 1,480 | Rake 0
Board: [3s 5c 7d 5d 3d]
Seat 1: hero (button) showed [Ah 5h] and won (1,480) with a full house, Fives full of Threes
Seat 2: (small blind) folded before the Flop
Seat 3: (big blind) folded before the Flop
Seat 4: villain showed [8s 8c] and lost with two pair, Eights and Fives

I went on to go heads up with Seat 3 and win, but I got very lucky to take out the 3rd place finisher.

It's been my lucky week so far, even being Friday the 13th and all. I hope it continues.