NL10 - TPGK facing Minraise o/ Flop

[JAgrazy]

0.05/0.10 No-Limit Hold'em <font color="blue">(8 handed)</font>
Hand recorder used for this poker hand: Texas Grabem 1.8 by www.pokerstrategy.cc.

Preflop: Hero is BU with K[img]/images/graemlins/spade.gif[/img], Q[img]/images/graemlins/diamond.gif[/img]
<font color="grey">5 folds</font>, <font color="red">Hero raises to $0.40</font>, <font color="grey">SB folds</font>, BB calls $0.30.

Flop: ($0.85) 3[img]/images/graemlins/heart.gif[/img], Q[img]/images/graemlins/spade.gif[/img], 7[img]/images/graemlins/club.gif[/img] <font color="blue">(2 players)</font>
BB checks, <font color="red">Hero bets $0.60</font>, <font color="red">BB raises to $1.20</font>, <font color="red">Hero raises to $3.50</font>, BB calls $2.30.

<ul type="square">I'm wondering if the raise is good or if i should just call the minraise?[/list]Turn: ($7.85) 6[img]/images/graemlins/spade.gif[/img] <font color="blue">(2 players)</font>
BB checks, Hero checks.

River: ($7.85) 8[img]/images/graemlins/spade.gif[/img] <font color="blue">(2 players)</font>
BB checks, Hero checks.

Final Pot: $7.85