Ugh. KQs Hand Critique needed.

[TRWIII]

I think you can argue I misplayed this on every street. I'll attempt to explain my thought process as I played the hand.

Party Poker 2/4 Hold'em (8 handed) converter

Preflop: Hero is SB with Q[img]/images/graemlins/spade.gif[/img], K[img]/images/graemlins/spade.gif[/img].
<font color="666666">3 folds</font>, MP2 calls, CO calls, <font color="666666">1 fold</font>, <font color="CC3333">Hero raises</font>, <font color="666666">1 fold</font>, MP2 calls, CO calls.

Raised because I figured to have the best hand and a follow though on a rag flop might pick it up if i dont hit.

Flop: (7 SB) 8[img]/images/graemlins/spade.gif[/img], 4[img]/images/graemlins/club.gif[/img], 9[img]/images/graemlins/heart.gif[/img] <font color="blue">(3 players)</font>
<font color="CC3333">Hero bets</font>, MP2 calls, <font color="CC3333">CO raises</font>, Hero calls, MP2 calls.

Well thats kinda a rag flop. I follow through hoping to pick it up. Call the raise because I've got odds to draw to an overcard.

Turn: (6.50 BB) K[img]/images/graemlins/club.gif[/img] <font color="blue">(3 players)</font> Yay! Hit the overcard.
<font color="CC3333">Hero bets</font>, MP2 calls, <font color="CC3333">CO raises</font>, <font color="CC3333">Hero 3-bets</font>, MP2 calls, <font color="CC3333">CO caps</font>, Hero calls, MP2 calls.

I 3-bet because.... well I'm not entirely sure. I was hoping I was against top pair and a straight draw or something similar. I'm thinking I shouldve folded to the cap, but the pot is huge and the river might save me.

River: (18.50 BB) 8[img]/images/graemlins/club.gif[/img] <font color="blue">(3 players)</font>
Hero checks, MP2 checks, <font color="CC3333">CO bets</font>, Hero calls, MP2 folds.

1 more bet? Sure why not... Ive got top pair [img]/images/graemlins/confused.gif[/img].

Final Pot: 20.50 BB

Results in white below: <font color="white">
CO shows Kd 4d (two pair, kings and eights).
Hero shows Qs Ks (two pair, kings and eights).
Outcome: Hero wins 20.50 BB. </font>

Sometimes lady luck smiles I suppose, but I'm still pretty sure I played this hand horridly, but I'm not really sure where I should've played it differently.

Thanks in advance,
TRWIII