AQo...bad line on the turn?

Party Poker 0.50/1 Hold'em (10 handed) FTR converter on zerodivide.cx

Preflop: Hero is SB with Q[img]/images/graemlins/diamond.gif[/img], A[img]/images/graemlins/heart.gif[/img]. CO posts a blind of $0.50.
<font color="#666666">1 fold</font>, UTG+1 calls, <font color="#666666">1 fold</font>, MP1 calls, <font color="#666666">1 fold</font>, MP3 calls, CO (poster) checks, Button calls, Hero completes, BB checks.

Flop: (7 SB) K[img]/images/graemlins/spade.gif[/img], T[img]/images/graemlins/heart.gif[/img], 3[img]/images/graemlins/heart.gif[/img] <font color="#0000FF">(7 players)</font>
<font color="#CC3333">Hero bets</font>, BB folds, UTG+1 calls, MP1 calls, MP3 folds, CO folds, Button calls.

Turn: (5.50 BB) 3[img]/images/graemlins/diamond.gif[/img] <font color="#0000FF">(4 players)</font>
Hero checks, UTG+1 checks, <font color="#CC3333">MP1 bets</font>, Button calls, Hero folds...

Final Pot: 8.79 BB

Is this the precisely the kind of fold I shouldn't be making? [img]/images/graemlins/confused.gif[/img]

After I looked at this hand again, I realized it might be the kind of thing Ed Miller is talking about in the "Crushing LL" thread.