A Difficult Hand to Play - Please Help

[Pedigree]

Party Poker 0.50/1 Hold'em (9 handed) FTR converter on zerodivide.cx

Preflop: Hero is MP2 with J[img]/images/graemlins/club.gif[/img], K[img]/images/graemlins/diamond.gif[/img].
<font color="#666666">2 folds</font>, MP1 calls, Hero calls, <font color="#666666">1 fold</font>, <font color="#CC3333">CO raises</font>, <font color="#666666">2 folds</font>, BB calls, MP1 calls, Hero calls.

No read on the CO, MP1 is loose passive. I assume this is pretty much standard. Anybody fold here for the first bet?

Flop: (8.50 SB) K[img]/images/graemlins/spade.gif[/img], Q[img]/images/graemlins/club.gif[/img], T[img]/images/graemlins/club.gif[/img] <font color="#0000FF">(4 players)</font>
<font color="#CC3333">BB bets</font>, MP1 calls, Hero calls, <font color="#CC3333">CO raises</font>, BB calls, MP1 calls, Hero calls.

No read on the BB, it was impossible to tell where I was at. I did know that against three players I almost definitely had a pot equity edge. I would've raised it myself but I thought the preflop raiser may raise again (especially since he was short stacked). If he raised the other two would've called for one more and I'd be making money (assuming I did have an equity edge).

On the other hand, maybe I should've raised and had him reraise to get it heads up and potentially buy some outs.

Turn: (8.25 BB) 2[img]/images/graemlins/diamond.gif[/img] <font color="#0000FF">(4 players)</font>
BB checks, MP1 checks, <font color="#CC3333">Hero bets</font>, <font color="#CC3333">CO raises</font>, BB calls, MP1 calls, Hero calls.

Now I kinda did actually want to get it heads up. I really can't say why I wanted it heads up here as opposed to on the flop, I just instinctively did. That's not a good reason, I know. But I bet and CO (short stacked, still could have anything) raised. When it got back to me I figured calling was a no brainer (folding sucks and raising is spewing). I hoped to improve.

River: (16.25 BB) J[img]/images/graemlins/diamond.gif[/img] <font color="#0000FF">(4 players)</font>
BB checks, <font color="#CC3333">MP1 bets</font>, Hero folds, <font color="#CC3333">CO raises to 1.75 BB (all in)</font>, BB folds, MP1 calls.

This play I'm very confident was right. With MP1 calling and calling and calling there was a really good chance he had an Ace. In addition, CO was so short he woulda raised with anything here for the hell of it. Because the pot was huge, if it was just me and MP1 heads up I would've considered calling one bet. But I knew I would've had to call 1.75 BB and there was no way in hell I had a 1.75/18 shot of beating both MP1 and CO.

Final Pot: 18 BB

Please help, how badly did I screw this hand up. [img]/images/graemlins/frown.gif[/img]