Where did I go wrong with this AQ?

[TStokes]

How do you guys play this? Should I have raised preflop? Should I have dropped it after his minraise? Villian (CO) in this hand had been playing a lot of hands. On the river I pushed all in and he called.

Party Poker No-Limit Hold'em Tourney, Big Blind is t30 (8 handed) converter

UTG (t205)
UTG+1 (t730)
MP1 (t685)
MP2 (t855)
CO (t1965)
Button (t1445)
SB (t1385)
Hero (t730)

Preflop: Hero is BB with Q[img]/images/graemlins/club.gif[/img], A[img]/images/graemlins/diamond.gif[/img].
<font color="#666666">4 folds</font>, CO calls t30, Button calls t30, SB completes, Hero checks.

Flop: (t120) 9[img]/images/graemlins/club.gif[/img], 6[img]/images/graemlins/heart.gif[/img], A[img]/images/graemlins/spade.gif[/img] <font color="#0000FF">(4 players)</font>
SB checks, <font color="#CC3333">Hero bets t80</font>, <font color="#CC3333">CO raises to t160</font>, Button folds, SB folds, Hero calls t80.

Turn: (t440) K[img]/images/graemlins/diamond.gif[/img] <font color="#0000FF">(2 players)</font>
Hero checks, <font color="#CC3333">CO bets t125</font>, Hero calls t125.

River: (t690) Q[img]/images/graemlins/diamond.gif[/img] <font color="#0000FF">(2 players)</font>

Final Pot: t690