Weak Overcard Play

I'm still having a hard time with overcards.....as a beginner I frequently feel
trapped/lost...

BB plays any two hands VPIP has to be like 80 percent....CO is more or less
typical VPIP of 35 or so....neither seem to be particularly aggressive post flop

Pacific Poker .25/.5....Hero is UTG with [A [img]/images/graemlins/heart.gif[/img] Q [img]/images/graemlins/spade.gif[/img]]

Preflop:

Hero raises, folds to CO who calls, SB folds, BB calls.

Pot = 6.5 sb
FLOP[7 [img]/images/graemlins/club.gif[/img] 3 [img]/images/graemlins/club.gif[/img] 9 [img]/images/graemlins/diamond.gif[/img]](3 players)

BB checks, Hero checks, CO bets, BB calls, Hero calls

Pot= 4.75 bb
Turn{T [img]/images/graemlins/diamond.gif[/img]](3 players)
BB checks, Hero checks, CO bets, BB calls, Hero calls

Pot=7.75 bb
River[T [img]/images/graemlins/club.gif[/img]](3 players)
BB checks, Hero checks, CO bets, BB folds, Hero folds

This is embarassing right? I should have led out and bet the flop?
I figure that if the overcard outs are good, I've got 6 outs and all I need is
6.7 : 1 to call...the pot gave me 7.5:1 and so the call was good. By the
same arguments, I only had 5.75:1 on the turn and I should have folded.
When the 3 flush appeared on the board and I had nothing, the river fold
was correct, right?

Thanks for any comments.

Jim