Trying not to spew

[Perseus]

Villian here just sat down and is the only guy at the table I dont have stats on, but I havn't seen him do anything dumb in the orbit he's been playing.

Been in a funk lately so I wanted to post some marginal situations I might be missing some +EV...

Party Poker 10/20 Hold'em (9 max, 9 handed) FTR converter on zerodivide.cx

Preflop: Hero is BB with 7[img]/images/graemlins/club.gif[/img], 8[img]/images/graemlins/diamond.gif[/img].
i]3 folds[/i]</font>, MP2 calls, MP3 calls,3 folds</font>, Hero checks.

Flop: (3.50 SB) 5[img]/images/graemlins/heart.gif[/img], 7[img]/images/graemlins/spade.gif[/img], T[img]/images/graemlins/club.gif[/img] 3 players)</font>
Hero bets</font>, MP2 calls, MP3 folds.

Turn: (2.75 BB) 3[img]/images/graemlins/diamond.gif[/img] (2 players)</font>
Hero bets...

What is my action here if Villian raises. Pots small, am I still calling down? Uncordinated board makes this look like I'm beat, so I am saying fold, but just wanted some opinions.