Playing AKs on the Small Blind

[mlepinski]

This is a hand from a 5+1 Party Poker SnG (which says a lot about my experience with tournament poker). This is the first time I've seen Villian raise in the tournament (he's limped into quite a few pots but never raised) so I believe indicates strength. I hate to fold AKs pre-flop but a little over half the time I'll fail to flop either top pair or a flush draw and then I'm stuck playing overcards out of position against a pre-flop raiser.

So I guess my question is: Should I have folded this hand pre-flop and if not should I have folded when the flop appeared to miss both of us?

Party Poker No-Limit Hold'em Tourney, Big Blind is t50 (6 handed) converter

MP (Villian)/ (t825)
CO (t2492)
Button (t1408)
Hero (t935)
BB (t1695)
UTG (t645)

Preflop: Hero is SB with K[img]/images/graemlins/heart.gif[/img], A[img]/images/graemlins/heart.gif[/img].
<font color="#666666">1 fold</font>, <font color="#CC3333">Villian raises to t225</font>, <font color="#666666">2 folds</font>, Hero calls t200, <font color="#666666">1 fold</font>.

Flop: (t500) 9[img]/images/graemlins/club.gif[/img], 7[img]/images/graemlins/diamond.gif[/img], 6[img]/images/graemlins/club.gif[/img] <font color="#0000FF">(2 players)</font>
Hero checks, <font color="#CC3333">Villian bets t150</font>, Hero folds.

Final Pot: t650