Calling from the button with KQ against an early position raiser?

New guy sits down at the table his 1st hand so I've got no read, raises from UTG+1. I call and hit top pair on the flop. But fold to his bet on the flop, what should I have done? Should I have even been in the hand?

Paradise Poker No-Limit Hold'em, $0.50 BB (10 handed) converter

BB ($75.50)
UTG ($45.50)
UTG+1 Villain ($50.00)
UTG+2 ($35.50)
MP1 ($85.25)
MP2 ($30.00)
MP3 ($49.25)
CO ($45.50)
Hero ($96.50)
SB ($47.25)

Preflop: Hero is Button with K[img]/images/graemlins/club.gif[/img], Q[img]/images/graemlins/heart.gif[/img]. Villain posts a blind of $0.50. SB posts a blind of $0.25.
UTG calls $0.50, <font color="#CC3333">Villain (poster) raises to $2.25</font>, <font color="#666666">5 folds</font>, Hero calls $2.50, <font color="#666666">2 folds</font>, UTG calls $2.

Flop: ($8.25) K[img]/images/graemlins/spade.gif[/img], 4[img]/images/graemlins/diamond.gif[/img], 6[img]/images/graemlins/heart.gif[/img] <font color="#0000FF">(3 players)</font>
UTG checks, <font color="#CC3333">Villain bets $7</font>, Hero folds, UTG folds.

Final Pot: $15.25

Results in white below: <font color="#FFFFFF">
No showdown. Villain wins $15.25. </font>