Settle an Argument: Good Fold?

[Fudgenut]

Party Poker No-Limit Hold'em Tourney, Big Blind is t15 (9 handed) converter

SB (t860)
BB (t1070)
UTG (t740)
UTG+1 (t865)
MP1 (t380)
MP2 (t1075)
MP3 (t755)
CO (t1395)
Hero (t860)

Preflop: Hero is Button with A[img]/images/graemlins/spade.gif[/img], A[img]/images/graemlins/club.gif[/img].
UTG folds, UTG+1 folds, MP1 folds, MP2 calls t15, MP3 folds, CO folds, <font color="#CC3333">Hero raises to t35</font>, SB calls t25, BB calls t20, MP2 calls t20.

Flop: (t137.50) 9[img]/images/graemlins/spade.gif[/img], 6[img]/images/graemlins/club.gif[/img], 8[img]/images/graemlins/heart.gif[/img] <font color="#0000FF">(4 players)</font>
<font color="#CC3333">SB bets t50</font>, <font color="#CC3333">BB raises to t100</font>, MP2 folds, <font color="#CC3333">Hero raises to t275</font>, SB folds, BB raises all in t1000, Hero folds.

Final Pot: t562.50