that fish, whether he realizes it or not, *does* have a point. yes, he may be getting 4:1 odds by chasing after the flop, but the *implied* odds being offered, should he hit the straight or flush, may be better. if he is getting 4:1 odds to see the turn/river and he hits his straight or flush, he may count the bet you will call (or make into him) in the implied odds. and since it is limit, he knows the exact amount of the bet he will have to call on the turn, and it will be small enough in relation to the pot (and what he will have to put in for a call) that it will very likely offer correct pot odds
the moral: don't assume that the *current* pot size is the only thing that dictates "correct" play in limit holdem.
and, as mentioned before, you were playing a $1 limit game. expect a lot of chasing. therefore, big hands (ie, large pocket pairs) decrease in value a bit, and chasing hands (AK, suited connectors, low pairs to hit trips) increase in value a little.