Party 500K Flopped Bottom Set, How Can I Play This Better?

[grandgnu]

Right after the first break, Hero is down to 3800 chips, blinds 100/200.

Hero limps in EP with 3/3. Bunch of limpers, SB folds and BB raps, pot is 1100, Hero has 3600 behind.

Flop is 3/5/8 rainbow.

Checked to Hero by the BB. I want action, this rainbow flop is good for me, someone might develop a draw on the turn, but I figure to have the best hand and hope it will stay that way. I don't want to squander this set though, so I'm hoping for some action.

With 1100 in the pot, I lead out for 700, leaving myself 2900 behind. MP limper calls as does the BB. Pot is now 3,200.

Turn is a 2 [img]/images/graemlins/spade.gif[/img], which presents a potential flush draw to spades now. BB fires out 700 chips into the 3200 pot?

Now I'm worried that he might have the magical 4/6 or A/4 and I've just been outdrawn, pretty much the worst card that could've hit for me on that flop (well, one of them anyway).

I decide to just smooth-call with position, the MP limper gets out. Pot is now 4,600. River is an offsuit Queen, I have 2200 chips left and the BB fires out 1500 chips.

I call and he has the 4/6 and I'm down to 700 left.

Should I have bet more on the flop? Should I have considered folding on the turn?

This was my first time playing the 500K, so I'm used to players overvaluing single pair hands or gutshot straight draws. I had no reads on this player yet, was fairly new to the table.