[GGG65]

I need help here - I keep looking at this hand over and over, and I just can't decide what the right way to play this situation is. There are two questions here: 1) Should I play this differently up to his river raise? 2) What should I do after his raise on the river?

Full Tilt Poker, $2/$4 NL Hold'em Cash Game, 6 Players

CO: $1,061.30
BTN: $408.50
SB: $552
Hero (BB): $856.85
UTG: $102.90
MP: $389

Pre-Flop: K[img]/images/graemlins/diamond.gif[/img] K[img]/images/graemlins/heart.gif[/img] dealt to Hero (BB)
2 folds, <font color="red">CO raises to $12</font>, 2 folds, <font color="red">Hero raises to $24</font>, CO calls $12

Flop: ($50) 9[img]/images/graemlins/spade.gif[/img] Q[img]/images/graemlins/heart.gif[/img] 7[img]/images/graemlins/diamond.gif[/img] (2 Players)
<font color="red">Hero bets $50</font>, CO calls $50

Turn: ($150) T[img]/images/graemlins/spade.gif[/img] (2 Players)
<font color="red">Hero bets $150</font>, CO calls $150

River: ($450) 8[img]/images/graemlins/club.gif[/img] (2 Players)
<font color="red">Hero bets $150</font>, <font color="red">CO raises to $512</font>

The villian is about a 35% flop player, a bit loose, a bit of a calling station, and twice in the two hours prior to this hand I've caught him making a bluff bet on the river (but this is the first time he makes a big reraise on me).

Because of his loose tendencies I could see him getting to the river with a wide range of hands. The reason I bet $150 on the river is to try to control the pot size - he may have got to the river with a jack in his hand (QJ, AJ, so on), and since I doubt he has the nuts KJ, I'm hoping he fears the possibility that I may have the nuts and only call me with a Jack instead of reraise. AQ seems quite possible, as well as a bluff to try to convince me that he does have a Jack. A set is also possible, but then why the reraise on the scare river card?

So, did I play this wrong? And, given that the pot is over $1100, can I possibly avoid tossing another $360 into it?