Good read and fold/or am i an idiot

[TheRonin]

I was in Atlantic City last week and was playing at the $1-$2 NL. The max buy-in was $200 and over half the table had more than $200. One guy had a stack of around $1500 and was raising or in every pot. Table was absolutley wild ultra loose and pretty aggressive.

I took in $200 and had my stack up to around $340 when I picked up Ad 9d in seat 4. The bully was in seat 1 and threw in $2 (BB) as so did the rest of the table. (no raise pre-flop)

Flop comes down Ac 9s 7s.

You can imagine I was pumped to see I flopped the top 2 pair w/ the maniac to have to act in front of me I was feeling confident about the hand before anyone was too act. Action goes
Seat 1 (bully) checks
Seat 2 (semi-aggressive) leads out with a $30 bet into a $10 pot. At a tight table the bet may have worried me but at this table I figured the guy was on a Spade flush draw. Seat 3 re-raises from $30 too $120. (majority of his stack)
Seat 4 I'm next to act w/ top 2 pair on the board. (my thinking was seat 2 has got the As Xs and seat 3 must have flopped 2 pair (just because I didn't feel he would make such a big bet into a pot w/ a set) I just wasnt sure if he had flopped the top 2 or bottom 2. I really felt I had seat 2 and 3 beat at that point in the hand. But my concern was this ... I was almost certain that seat 2 had the nut flush draw (and had chips to spare in front of him) he had myself and seat 3 covered ... My thinking at this point was if I push here seat 3 has so many of his chips in the pot at this point he has to call, seat 2 would observe this and at that point ...
would be getting even money to call with his flush draw.... Fearing I would be giving him the odds to call or that I was maybe possibly up against a small set I muck the top 2 pair.
Remaining players fold / seat 1 folds
turn comes 3d (Ac 9s 7s)
Seat 2 checks Seat 3 puts in his remaining money around $40-$50 and seat 2 calls.
river 3h (Ac 9s 7s 3d 3h)
at this point
seat 3 turns over 9x 7x
(he had the bottom 2 pair on the flop -- the table figured that seat 2 would turn over the As for the winning hand w/ A's up (3's on the board) but to everyones suprise
seat 2 shows 8s 10s (for the open ended str8 flush draw on the flop)

Outcome:
Seat 3 wins pot w/ 2 pair / (I mucked the winner)
at this point i left the table / i figured if i couldnt play the top 2 pair on the flop w/ confidence then i was eventually gonna get outplayed.. maybe i was over my head.

I guess my real question is : if I was confident in my read about seat 2 w/ the flush draw was my fold incorrect? How was my thinking wrong ? All thoughts welcome.

[PHILIVEY1]

Statistically not a good play, even if everyone has what you think they do, odds still favor you.

[gjpure]

the only hand he could have had to beat you at that point was trip sevens. Consider the likelyhood of the at your pot odds and your lay down was probably questionable, but not terrible. You cant loose what you dont put in, and you cant win them all. If your not 100% sure than I always believe a lay down is justified, even though it bites.