Too aggressive with mid-pair in late position?

Party Poker 0.50/1 Hold'em (10 handed) converter (http://www.selachian.com/tools/bisonconverter/hhconverter.cgi)

Preflop: Hero is MP2 with 7/images/graemlins/spade.gif, 7/images/graemlins/heart.gif.
<font color="#666666">1 fold</font>, UTG+1 calls, <font color="#666666">2 folds</font>, Hero calls, <font color="#666666">2 folds</font>, Button calls, SB completes, BB checks.

Flop: (5 SB) 9/images/graemlins/heart.gif, 6/images/graemlins/club.gif, 4/images/graemlins/diamond.gif <font color="#0000FF">(5 players)</font>
SB checks, BB checks, UTG+1 checks, <font color="#CC3333">Hero bets</font>, Button calls, SB calls, BB folds, UTG+1 folds.

Turn: (4 BB) 3/images/graemlins/diamond.gif <font color="#0000FF">(3 players)</font>
SB checks, <font color="#CC3333">Hero bets</font>, <font color="#CC3333">Button raises</font>, SB calls, Hero...

The two players left in the pot were loose, but that's all the information I had on them at the time.

I took a stab at the flop since no one represented the 9 yet. The button might have it, of course. But he could have many other hands.

I knew if I checked to the button he could bet with many hands I could beat, but I wouldn't know where I stood. I continued representing the 9 since no one has shown strength yet.

Then I get popped on the turn when a 4 comes up... I didn't know what to make of it. He could be raising a draw (flush or straight), or he might have had 75 for a straight, who knows?

I called him on the turn incase he had a draw, but am thinking in such a small pot I should have just dumped the 7s.

[David04]

I would fold to the turn raise. The pot is too small here.

[Aaron W.]

Fold to the turn raise. You're almost certainly beat. Take note of what button has (hopefully SB will call river bet also). I would be surprised if it's anything less than two pair, but if it is a one pair hand or a semi-bluff, you now know that villain is tricky and/or aggro. This is good information to have on the player acting immediately after you.

Edit: Crap. Missed the gutshot. Calling the turn is fine, but don't call a river bet.

[istewart]

The turn is close because you occasionally have 6 outs and are getting 9:1. I think if you do some discounting (as a 7 will sometimes give another person a straight and a 5 might chop the pot) it turns into a fold, but I'm not sure.

I would also raise preflop unless you expected others to limp behind you.

[detruncate]

You could raise this pf if UTG+1 is a loose limper, and I like it more as your chances of playing out the hand HU or 3-way (esp. with position) increase. A limp is probably better if the players behind you are loose.

You're getting 9:1 on the turn, but I'd still fold given that your implied odds are poor and several of your outs are questionable.

That's right, I forgot to mention I also had a gutshot. I missed it and folded on the river. Too bad the tag-along player didn't call the river bet so I didn't see villain's hand. I imagine it was two-pair or better.

UTG+1 indeed was a loose limper. So was the majority of the table.

I'm still not comfortable raising 77 from MP unless I'm somewhat confident I can narrow the action down to heads-up or 3-way, and I didn't see that happening here with this loose table. I'd raise 88 and above from MP though. It might seem arbitrary, but it works for me.