NL50 - How would you play this AQs?

[litemyfire]

I really hate these situations, what do you think of my pre flop play and how would you play it? who would check and see a flop? And when the flop comes all blanks do you C-bet or give up immediately?

I seem to find myself in these very annoying situations all the time. Is AQs too good of a hand to simply check/fold in the blinds if there is no A or Q on the flop?

Prima Poker skin
No Limit Holdem Ring game
Blinds: $0.25/$0.50
10 players
Converter

Pre-flop: (10 players) Hero is BB with A[img]/images/graemlins/diamond.gif[/img] Q[img]/images/graemlins/diamond.gif[/img]
2 folds, UTG+2 calls, 3 folds, CO (poster) checks, Button calls, SB calls, <font color="#cc0000">Hero raises to $2</font>, UTG+2 folds, CO calls, Button calls, SB calls.

Flop: 7[img]/images/graemlins/spade.gif[/img] J[img]/images/graemlins/diamond.gif[/img] 8[img]/images/graemlins/spade.gif[/img] ($10, 4 players)
SB checks, <font color="#cc0000">Hero bets $7</font>, CO calls, Button folds, SB calls.

Turn: 8[img]/images/graemlins/heart.gif[/img] ($31, 3 players)
SB checks, Hero checks, <font color="#cc0000">CO bets $15.75</font>, SB folds, Hero folds.
Uncalled bets: $15.75 returned to CO.

Results:
Final pot: $31