AA hand I misplayed

[Wu36]

Villain is 26/12/3 over 1500+ hands
Party Poker No-Limit Hold'em, $ BB (10 handed) converter

MP2 ($8381)
MP3 ($1865)
CO ($1996)
Button ($0)
Hero ($4069)
BB ($3275.50)
UTG ($3794.50)
UTG+1 ($3297)
UTG+2 ($1970)
MP1 ($2000)

Preflop: Hero is SB with A[img]/images/graemlins/heart.gif[/img], A[img]/images/graemlins/spade.gif[/img]. Hero posts a blind of $10.
<font color="#666666">3 folds</font>, MP1 calls $20, <font color="#CC3333">MP2 raises to $135</font>, <font color="#666666">2 folds</font>, Hero (poster) calls $125, <font color="#666666">2 folds</font>.

Flop: ($310) 9[img]/images/graemlins/heart.gif[/img], 5[img]/images/graemlins/spade.gif[/img], Q[img]/images/graemlins/club.gif[/img] <font color="#0000FF">(3 players)</font>
Hero checks, <font color="#CC3333">MP2 bets $300</font>, Hero calls $300.

Turn: ($910) T[img]/images/graemlins/spade.gif[/img] <font color="#0000FF">(3 players)</font>
Hero checks, <font color="#CC3333">MP2 bets $350</font>, Hero calls $350.

River: ($1610) 7[img]/images/graemlins/club.gif[/img] <font color="#0000FF">(3 players)</font>
<font color="#CC3333">Hero bets $1000</font>,

Final Pot: $3610
Preflop I think I have to make it 500 or so, smooth calling doesnt seem too good given the stack sizes and villains relatively wide range. Seems like I should raise the flop or lead the turn, both of these probably make the river easier to play.