Re: When to let go?
Hand 1 is a pretty easy call. The ragged board encourages a hand like KJ to raise top pair. If he has a set, so be it.
Hand 2 is a fold. Your hand is very strong, but the only hands you beat on the river are busted straight draws, and loose passive players don't make this bluff. Sure the pot is very large, but if you have a solid read (I mean AF<.5 or similar) there isn't much to fear. I should add that value betting the river isn't very good here, based on the past action. I'd be willing to check/call. A Bet/call plan is too loose.
As to where to draw the line on paying off, it's just reading hands and players. It doesn't matter if you are getting impeccable odds, theoretically, when you know you are beat. If you don't "know", then it is wise to convert your confidence level (this must be related to villain's range of hands and bluffing capacity) into some kind of percentage and calculate pot odds.
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