Party 2/4 - K4o in CO after posting

[ZootMurph]

I post in CO. MP3 also posts. $7 in the pot before cards are dealt. I'm dealt K4o. Action: Fold, Raise (This player is a multitabler who I've played against before... 25%/15% Aggressive and somewhat loose player who seems to be having a good day at this table with over $250 in her stack.), Fold, Call, Fold, Call... Getting 17:2 odds, I call, Fold, Call, Call. 6 to the flop with $24 in the pot. Flop is 347 rainbow. SB and BB check, initial raiser bets. MP1 calls, MP3 (poster) folds, I call, SB calls, BB calls. $31 after rake in pot. Turn is 6, putting 2 diamonds on board. Blinds check, Raiser bets, MP1 calls, I raise, blinds fold, raiser thinks a LONG time before calling, MP1 calls. Pot is now $55. River is a 9, no diamond. Raiser bets, MP1 goes into the tank and calls, I call getting over 15:1.

Please comment on the whole hand, not just the fact that the preflop call was bad (if that is your opinion). Also, please explain why you think what you do. Below are my thoughts on the hand as it played out:

Preflop I was getting 17:2 to call, plus I'm in position. Add to that the fact that, if a 4 hits, I can have AK or KQ reverse dominated and have huge implied odds. If I don't hit, I've lost one small bet. I think a call is all upside for $2, so I call. Flop is really nice for me, although any pocket pair has me beat. Again, with big odds on the flop, I call $2 with possibly the best hand, but also with up to 5 outs if I don't. When there are so many callers, I am concerned that I am beat against a pocket pair or A7. The turn is an interesting card. If I was ahead to start off, I'm still ahead now. With the straight out there, I have to assume that I can push out any pocket pairs or a pair of 6s or 7s with a raise, saying I have a 5. When the initial raiser calls, I put him on a big suited Ace of diamonds. MP1's call means I've probably lost the hand, as he has to have something. River is a non diamond, and all I can really hope for is no one hit that 9 and they both were on flush draws. I have to believe I win this 1 time in 15, so I call. I know I played this hand poorly, so I'm hoping people can shed light on each street about where I went wrong.

As always, thanks in advance for any input with the reasoning behind it you have.