Folding sets before the river

[Nutz&Boltz]

Is it ever correct to fold a set before the river?

Since the only reasonable way you could be drawing dead (1 out) is if someone else has a larger set and putting players on sets is akin to seeing monsters under the bed.

I made a big mistake at a 2-4 game last night and realized I didn't have any general rules on the topic because it happens so rarely.

I'm at a very loose(6-8 callers preflop)and passive table.
I'm in the BB w/pocket jacks. (Suits are not important) 7callers to me and I check.(maybe a little weak?)
flop is 9,10,J rainbow. I have top set.
Small blind bets out I call planning on raising the turn when the bets double. MP1,MP2 and Button call.
Turn is the 8 DOH! now I am 90% sure I am behind to a ST8.
SB bets, now with 6 Big Bets in the pot and 10 outs I call. Pot odds 7-1, my outs are 10 to hit a boat or better which is about 4.6-1 with One card to come.
I call, MP call, Button raises, SB reraises

2 Big Bets to me and my read is the Button and SB will cap with their straights.
I fold not wanting to put that many chips in the pot on a draw(a weak-tight mistake, which had a lot to do with a very cold streak I am on and not the pot odds)

River is (you guessed it)a 9 giving me a folded boat.
This hand made me realize I had read or experiences little about drawing for a boat, I was not prepared. Please share thoughts on this.