AJ two pair fold sound?

VILLIAN = 29/0/0.5 over 42 hands (in other words very passive and the pre flop raise probably meant AA or KK). I put him on AA this hand and think I made the right laydown...thoughts?

Party Poker No-Limit Hold'em (NL$25) <font color="#0000FF">(9 handed)</font> link

MP1 ($27.76)
MP2 ($25.25)
MP3 ($26.40)
CO ($9.95)
Button ($17.15)
SB ($24.75)
BB ($25.00)
UTG ($24.80)
Hero ($24.60)

Preflop: Hero is UTG+1 with J[img]/images/graemlins/heart.gif[/img], A[img]/images/graemlins/club.gif[/img].
<font color="#CC3333">UTG raises to $0.50</font>, Hero calls $0.50, <font color="#666666">7 folds</font>.

Flop: ($1.35) T[img]/images/graemlins/heart.gif[/img], A[img]/images/graemlins/heart.gif[/img], J[img]/images/graemlins/club.gif[/img] <font color="#0000FF">(2 players)</font>
<font color="#CC3333">UTG bets $1.00</font>, <font color="#CC3333">Hero raises to $4.00</font>, UTG calls $3.00.

Turn: ($9.35) T[img]/images/graemlins/diamond.gif[/img] <font color="#0000FF">(2 players)</font>
<font color="#CC3333">UTG bets $5.00</font>, Hero folds.

Final Pot: $14.35.

[Morrek]

29/0/0.5 over 42 hands can very well just be a bad run of cards... You're still ahead of AK AQ here and I see no sign of strength from villain.
BTW: if you put him on AA you should fold preflop

I think it is a good fold. Either you are way ahead or way behind here and it sounds like you had some kind of a read on him.