Who made the mistake?

[golFUR]

Granted I'm still learning this game, it seems to me he made a bad call that got lucky. Review this hand for me?

Ultimate Bet Pot-Limit Omaha High, $.50 BB (10 handed)

MP2 ($78.05)
MP3 ($28.95)
CO ($123.60)
Button ($42)
SB ($20.25)
BB ($25.10)
UTG ($20.50)
UTG+1 ($60.75)
Hero ($66.80)
MP1 ($18.50)

Preflop: Hero is UTG+2 with J[img]/images/graemlins/diamond.gif[/img], K[img]/images/graemlins/heart.gif[/img], K[img]/images/graemlins/spade.gif[/img], A[img]/images/graemlins/heart.gif[/img].
UTG folds, UTG+1 calls $0.50, <font color="CC3333">Hero raises to $2.25</font>, MP1 calls $2.25, MP2 folds, <font color="CC3333">MP3 raises to $10.25</font>, CO folds, Button folds, SB folds, BB folds, UTG+1 folds, <font color="CC3333">Hero raises to $34.25</font>, MP1 calls $16.25 (All-In), MP3 calls $16.25 (All-In).

Flop: ($80.50) J[img]/images/graemlins/heart.gif[/img], 7[img]/images/graemlins/diamond.gif[/img], 8[img]/images/graemlins/spade.gif[/img] <font color="blue">(3 players, 2 all-in)</font>

Turn: ($80.50) 6[img]/images/graemlins/heart.gif[/img] <font color="blue">(3 players, 2 all-in)</font>

River: ($80.50) A[img]/images/graemlins/spade.gif[/img] <font color="blue">(3 players, 2 all-in)</font>

Final Pot: $80.50

Results in white below: <font color="white">
Hero has Jd Kh Ks Ah (two pair, aces and jacks).
MP1 has 5d 3h Kd 7s (one pair, sevens).

Outcome: MP3 wins $72.75. Hero wins $7.75. </font>

Or is his pocket desirable and playable? Can he 'assume' I have high cards and be looking for the middle? For all-in?