KK - Stupidly Cautious?

I'm just gettin started in limit, and I figured might as well start at the bottom... I'm not comfortable enough playing .5/1, so I'm at the nanos [img]/images/graemlins/wink.gif[/img] Waitin on Neteller to clear so I can register PT and PA, and this guy's new to the table anyway. No reads. I've been solid - not that they'd notice. Anyhow...

PokerStars 0.02/0.04 Hold'em (8 handed) converter

Preflop: Hero is Button with K[img]/images/graemlins/club.gif[/img], K[img]/images/graemlins/spade.gif[/img]. MP2 posts a blind of $0.02.
<font color="#666666">3 folds</font>, MP2 (poster) checks, <font color="#CC3333">Villian raises</font>, <font color="#CC3333">Hero 3-bets</font>, SB calls, <font color="#666666">1 fold</font>, MP2 folds, <font color="#CC3333">Villian caps</font>, Hero calls, SB calls.

KK preflop vs a capper. Alright!

Flop: (14 SB) 3[img]/images/graemlins/heart.gif[/img], J[img]/images/graemlins/heart.gif[/img], Q[img]/images/graemlins/spade.gif[/img] <font color="#0000FF">(3 players)</font>
SB checks, <font color="#CC3333">Villian bets</font>, <font color="#CC3333">Hero raises</font>, SB folds, <font color="#CC3333">Villian 3-bets</font>, Hero calls.

He leads. I raise. His 3-bet scares me - should it? We're at the nanos, but is he capping enough crap here - or is this AK enough - that I should cap the flop? He can have AK 8 ways (AKh for the flush draw), QQ 3 ways, JJ 3 ways, AA 4 ways and KK 1 way. Is my call right? I went into c/c mode

Turn: (10 BB) 2[img]/images/graemlins/club.gif[/img] <font color="#0000FF">(2 players)</font>
<font color="#CC3333">Villian bets</font>, Hero calls.

Yep, check/call...

River: (12 BB) 7[img]/images/graemlins/diamond.gif[/img] <font color="#0000FF">(2 players)</font>

Final Pot: 12 BB

Was my line too cautious? What should I expect to be seen from this guy who capped preflop, and bet/raised every single street? Are my Kings gonna be good here? Also, if I decide he's probably got me beat, am I better off just folding? Probably not at the nanos, right?

Thanks for your thoughts.