Should I have folded on the flop? nl5/10

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Villian calls a lot of raises PF and min bets with nothing. Ive caught a few cards on him. His raise on flop told me he hit, but I felt like I could take it away with any face card or if my cards hit.

PokerStars No-Limit Hold'em, $0.05 BB (6 handed) Hand History Converter Tool from FlopTurnRiver.com (Format: 2+2 Forums)

SB ($10.27)
BB ($4.69)
UTG ($9.99)
Hero ($12.09)
CO ($9.11)
Button ($2.03)

Preflop: Hero is MP with 9[img]/images/graemlins/spade.gif[/img], A[img]/images/graemlins/heart.gif[/img].
<font color="#666666">1 fold</font>, <font color="#CC3333">Hero raises to $0.2</font>, <font color="#666666">1 fold</font>, Button calls $0.20, <font color="#666666">2 folds</font>.

Flop: ($0.47) 3[img]/images/graemlins/heart.gif[/img], 6[img]/images/graemlins/spade.gif[/img], 7[img]/images/graemlins/club.gif[/img] <font color="#0000FF">(2 players)</font>
<font color="#CC3333">Hero bets $0.25</font>, <font color="#CC3333">Button raises to $0.5</font>, Hero calls $0.25.

Turn: ($1.47) J[img]/images/graemlins/club.gif[/img] <font color="#0000FF">(2 players)</font>
Hero checks, <font color="#CC3333">Button bets $0.2</font>, <font color="#CC3333">Hero raises to $1.2</font>, Button folds.

Final Pot: $1.87