Is it ever correct to fold AA preflop in a NL tournament?

[athosandaramis]

About 3 months ago I was playing in a $60 NLH tournament in central CA. We were down to two tables of 8 players each (everyone is now in the money, the big$ is for 1st-3rd) I am in second chip position with 85k and the chip leader is at my table with 125k. No one else has more than 50k but most have between 15-30k. I am in late position and see AA. An early position player raises all-in for 30k. He is immediately called by another player over-the-top for 45k all in. That bet is also called all-in by a player with around 35k. The chip leader moves all-in. He is also called (5 handed). The chip leader has been showing big hands all day. I decide to FOLD. I believed that by avoiding this melee I could guarantee myself a spot at the final table and a high (top 3 finish) A bad beat by the chip leader ends my day and a suck-out by any of the other four opponents puts me back in the middle of the field. Anyway, the AA would have held up. I eventually finished the tournament in 3rd place ($800.00) payout. I welcome your thoughts. One friend calls it the best laydown he has ever witnessed, another says I'm the biggest p***y he has ever seen and calls it the weakest play ever and that I outsmarted myself. I must concede that had I called, I would have likely won the tournament. I am intrested in 2 things: 1) how did I play the hand and 2)is there EVER a time to lay down AA preflop in NLH tournaments?