Ouch - Bad Beat Delivered!

[Aequitas58]

I'm playing in a $20+2 SnG on Party ... Check out the hand history below.

***** Hand History for Game 1230809200 *****
30/60 TourneyTexasHTGameTable (NL) (Tournament 7487747) - Sat Nov 27 19:55:42 EST 2004
Table Table 13969 (Real Money) -- Seat 2 is the button
Total number of players : 7
Seat 1: morroman (900)
Seat 2: terrence50 (1682)
Seat 3: neutron99 (740)
Seat 4: BADBWOY (2308)
Seat 5: tidwellrusty (720)
Seat 8: AFAfan (875)
Seat 9: Aequitas58 (775)
neutron99 posts small blind (15)
BADBWOY posts big blind (30)
** Dealing down cards **
Dealt to Aequitas58 [ 7d, 7c ]
tidwellrusty folds.
AFAfan folds.
Aequitas58 calls (30)
morroman calls (30)
terrence50 folds.
neutron99 folds.
BADBWOY checks.
** Dealing Flop ** : [ 2s, 7h, 8d ]
BADBWOY checks.
Aequitas58 checks.
morroman checks.
** Dealing Turn ** : [ Ts ]
BADBWOY bets (65)
Aequitas58 raises (130) to 130
morroman raises (870) to 870
morroman is all-In.
BADBWOY folds.
Aequitas58 calls (615)
Aequitas58 is all-In.
** Dealing River ** : [ 8c ]
Creating Main Pot with $1660 with Aequitas58
Creating Side Pot 1 with $125 with morroman
** Summary **
Main Pot: 1660 | Side Pot 1: 125
Board: [ 2s 7h 8d Ts 8c ]
morroman balance 125, bet 900, collected 125, lost -775 [ 9s Jh ] [ a straight, seven to jack -- Jh,Ts,9s,8d,7h ]
terrence50 balance 1682, didn't bet (folded)
neutron99 balance 725, lost 15 (folded)
BADBWOY balance 2213, lost 95 (folded)
tidwellrusty balance 720, didn't bet (folded)
AFAfan balance 875, didn't bet (folded)
Aequitas58 balance 1660, bet 775, collected 1660, net +885 [ 7d 7c ] [ a full house, Sevens full of eights -- 8d,8c,7d,7c,7h ]

Would you have called the all-in bet? Disregarding hindsight, do you put him on the straight?