Dropping AKos preflop

I've never done this before. But being on the small blind, I thought it was a good play. Am I an idiot or actually learning?

MP1 is 25/8.3 after 12 hands. Button is 50/6.25 after 48 hands.

Party Poker 2/4 Hold'em (8 handed) converter

Preflop: Hero is SB with A[img]/images/graemlins/diamond.gif[/img], K[img]/images/graemlins/heart.gif[/img].
<font color="#666666">2 folds</font>, <font color="#CC3333">MP1 raises</font>, MP2 calls, <font color="#666666">1 fold</font>, <font color="#CC3333">Button 3-bets</font>, <font color="#666666">2 folds</font>, MP1 calls, MP2 calls.

Flop: (10.50 SB) 8[img]/images/graemlins/diamond.gif[/img], A[img]/images/graemlins/spade.gif[/img], 7[img]/images/graemlins/spade.gif[/img] <font color="#0000FF">(3 players)</font>
MP1 checks, MP2 checks, <font color="#CC3333">Button bets</font>, MP1 calls, MP2 folds.

Obviously I wanted in there after the flop. But was it right to fold AK out of position there?