A really bad hand

[vexvelour]

Hi all. I have to get this stupid game off my chest. I'd also like some insight into what you guys would do in these situations.

Ok, home cash game, 5 players..I just won a huge pot and am chipleader by a good bit. We're playing .50/1.00 NLH. I'm not sure how to lay out the game, so here goes nothing..

SB, BB, P3 calls, I've got A-7d suited and I raise to $2 cause it feels like a lucky hand. Dealer folds, SB calls, BB calls, P3 folds.
Flop comes, Ks, 8s, 7h. SB(jackyl) bets out $1. BB(aggr)calls and raises 2. I call, I know my low pair is very iffy, but I have a really good feeling about it. SB calls and re-raises another $2. BB calls and it's another $2 to me.

Now I want to break here....what would you do?? Think about it before you read the rest of the hand.

Ok, so I think about my 7's and I fold. I figure SB has top pair and BB has a flush draw (which I know he'll pay to chase). Both of those beat my low pair. Turn is a 7s. I folded trips. They both bet out and the river comes 7c. I KNEW dammit I knew that was a good hand.

Should I have listened to my instincts? My poker player mind couldn't agree with my gut and I made a bad fold, obviously. Is this just a case of regret or did I make a bad fold?

Thanks for reading.