This is a very tough situation. And it perfectly illustrates the advantages of having a loose/aggressive table image. People start wanting a piece of you and will pay off your good hands.

As far as how you could have played it differently, I'm not sure what to tell you. One possibility would be to observe this guy and see if his looseness manifests differently when he's calling vs. raising. Calling down with a bad hand or raising a bit with a middle pair is one thing; re-raising pre-flop for a couple bucks is something else. Watch and see just how often he raises, and specifically RE-raises, pre-flop. It may be that this guy is generally a loose/aggressive player who specifically re-raises pre-flop like all the rest of us do, with aces and kings. In which case, you know to fold... or minimize your losses by just calling to take a flop, and not jamming all your money in the pot as quickly as possible.

As for your question about if this might have played differently once cards hit the board, I'm inclined to say probably not. Your assessment sounds right to me. It's very hard to lay down an overpair in this situation. That's something you just have to learn to sniff out, whether against this player or any other. It seems like a fourth of the time when I see someone bust out, it's queens vs kings, jacks vs kings, what have you. Very hard hands to fold. Sometimes you will simply lose money on them. One trick is to start realizing when you MIGHT be beat, and even if you can't convince yourself to let the hand go, just stop raising... call it down and see what happens as cheaply as possible.