Flop advice required for 66 hand

[Barrett's Last Privateer]

Folks, should I have led out this flop, and if so, should I fold to the raise?

Thanks in advance for the advice!

Ultimate Bet 0.25/0.50 Hold'em (10 handed) converter (http://www.selachian.com/tools/bisonconverter/hhconverter.cgi)

Preflop: Hero is BB with 6/images/graemlins/spade.gif, 6/images/graemlins/heart.gif. MP1 posts a blind of $0.25.
<font color="666666">3 folds</font>, MP1 (poster) checks, <font color="666666">3 folds</font>, Button calls, SB completes, Hero checks.

Flop: (4 SB) 5/images/graemlins/heart.gif, 5/images/graemlins/diamond.gif, 7/images/graemlins/spade.gif <font color="blue">(4 players)</font>
SB checks, <font color="CC3333">Hero bets</font>, <font color="CC3333">MP1 raises</font>, Button folds, SB calls, Hero folds.

[emonrad87]

Call the raise and check/fold the turn unimproved.

[sin808]

I would lead out and probably 3-bet this flop and see what happens from there.