Horribly misplayed HU

[Inevitable]

I just had a feeling that I was a much better player than him, because I saw him folding to an all-in, last to act for 1:16... Well, I refused to give him credit because he picked up a couple before this to get even with me and he didn't respect any of my raises. I would have folded at the flop, but I wanted to see exactly how strong he was. At the turn, I felt that my draw was too strong and I was too pot commited to fold. Fold preflop? Fold flop? Raise flop? What do I do?! /images/graemlins/confused.gif As always, any help appreciated. Thanks.

PokerStars No-Limit Hold'em Tourney, Big Blind is t200 (2 handed) converter (http://www.selachian.com/tools/bisonconverter/hhconverter.cgi)

Hero (t6985)
BB (t6515)

Preflop: Hero is Button with 7/images/graemlins/diamond.gif, A/images/graemlins/club.gif.
<font color="#CC3333">Hero raises to t600</font>, BB calls t400.

Flop: (t1025) J/images/graemlins/club.gif, 9/images/graemlins/club.gif, 8/images/graemlins/spade.gif <font color="#0000FF">(2 players)</font>
<font color="#CC3333">BB bets t1000</font>, <font color="#CC3333">Hero raises to t3000</font>, BB calls t2000.

Turn: (t7025) 2/images/graemlins/club.gif <font color="#0000FF">(2 players)</font>
<font color="#CC3333">BB bets t2890 (All-In)</font>, Hero calls t2890.

River: (t12805) 8/images/graemlins/diamond.gif <font color="#0000FF">(2 players, 1 all-in)</font>

Final Pot: t12805

[hockeyf]

Fold that flop, that flop hit many hands so hard.