NL25 AK

[HighCardSeven]

Poker Stars - No Limit Hold'em Cash Game - $0.10/$0.25 Blinds - 5 Players - (LegoPoker Hand History Converter)

SB: $38.90
Hero (BB): $25.85
UTG: $7.25
CO: $30.75
BTN: $26.50

Preflop: Hero is dealt A[img]/images/graemlins/spade.gif[/img] K[img]/images/graemlins/spade.gif[/img] (5 Players)
UTG calls $0.25, CO folds, <font color="red">BTN raises to $1.00</font>, SB folds, Hero calls $0.75, UTG calls $0.75

Flop: ($3.10) 5[img]/images/graemlins/spade.gif[/img] J[img]/images/graemlins/club.gif[/img] 6[img]/images/graemlins/spade.gif[/img] (3 Players)
Hero checks, UTG checks, <font color="red">BTN bets $2.50</font>, <font color="red">Hero raises to $7.00</font>, UTG folds, <font color="red">BTN raises all-in to $25.50</font>, Hero calls all-in for $17.85
Uncalled bet of $0.65 returned to BTN

Turn: ($52.80) 8[img]/images/graemlins/club.gif[/img] (2 Players - 2 All-In)

River: ($52.80) 9[img]/images/graemlins/spade.gif[/img] (2 Players - 2 All-In)

Pot Size: $52.80 ($2 Rake)

I know, calling preflop is horrible, especially out of position. As played: Is my flopplay okay or should I fold to his allin or just call his first bet?