Straight with a flush board

[Mr. D]

So I hung in for a gut shot figuring the implied odds were good. I hit it, but it made a flush board. Bet the pot, got raised. Does he have a flush? Do you Fold here? Its a $30 SnG on party. Here's the hand:

Party Poker No-Limit Hold'em Tourney, Big Blind is t15 (10 handed)

Hero (t905)
UTG (t855)
UTG+1 (t785)
UTG+2 (t915)
MP1 (t1040)
MP2 (t740)
MP3 (t740)
CO (t710)
Button (t525)
SB (t785)

Preflop: Hero is BB with 4[img]/images/graemlins/club.gif[/img], 8[img]/images/graemlins/club.gif[/img].
UTG folds, UTG+1 folds, UTG+2 folds, MP1 folds, MP2 folds, MP3 folds, CO calls t15, Button folds, SB completes, Hero checks.

Flop: (t45) K[img]/images/graemlins/club.gif[/img], 6[img]/images/graemlins/spade.gif[/img], 5[img]/images/graemlins/heart.gif[/img] <font color="blue">(3 players)</font>
SB checks, Hero checks, <font color="CC3333">CO bets t15</font>, SB folds, Hero calls t15.

Turn: (t75) 2[img]/images/graemlins/heart.gif[/img] <font color="blue">(2 players)</font>
<font color="CC3333">Hero bets t40</font>, CO calls t40.

River: (t155) 7[img]/images/graemlins/heart.gif[/img] <font color="blue">(2 players)</font>
<font color="CC3333">Hero bets t155</font>, <font color="CC3333">CO raises to t310</font>, Hero calls t155.

Final Pot: t775

results to follow . .