flopped bottom set - 5 handed: misplayed or just unlucky?

[gotham]

I didn't have any real feel for the villain - seemed to be playing solid poker ...

Party Poker No-Limit Hold'em Tourney, Big Blind is t200 (5 handed)

UTG (t1779)
MP (t1934)
Button (t1072)
Hero (t1855)
BB (t1360)

Preflop: Hero is SB with 3/images/graemlins/spade.gif, 3/images/graemlins/club.gif.
UTG folds, MP calls t200, Button folds, Hero completes, BB checks.

Flop: (t600) 3/images/graemlins/heart.gif, 7/images/graemlins/club.gif, K/images/graemlins/club.gif <font color="blue">(3 players)</font>
Hero checks, <font color="CC3333">BB bets t200</font>, MP folds, <font color="CC3333">Hero raises to t500</font>, <font color="CC3333">BB raises to t1160 (All-In)</font>, Hero calls t660.

Based on limited information ... was a check-raise a bad play? Should I have check-raised all-in? Was I correct to have called the all-in? Should I have played more conservatively overall given the flush draw?

Turn: (t2920) 4/images/graemlins/club.gif <font color="blue">(2 players, 1 all-in)</font>

River: (t2920) A/images/graemlins/club.gif <font color="blue">(2 players, 1 all-in)</font>

Final Pot: t2920
<font color="green">Main Pot: t2920 (t2920), between Hero and BB.</font> &gt; <font color="white">Pot won by BB (t2920).</font>

Results in white below: <font color="white">
Hero has 3s 3c (flush, ace high).
BB has 7d 5c (flush, ace high).
Outcome: BB wins t2920. </font>

[lastchance]

Bad beat police!

I'd check-raise all-in, because I'd do that with a flush draw and top pair. If you're not that kind of person, sure, lead out, and call all in. NEVER, NEVER lay this hand down.