two pair river

[barabe]

Poker Stars - No Limit Hold'em Cash Game - $0.02/$0.05 Blinds - 5 Players - (LegoPoker Hand History Converter)

SB: $2.37
Hero (BB): $5.71
UTG: $3.35
CO: $7.83
BTN: $4.15

Preflop: Hero is dealt 7[img]/images/graemlins/club.gif[/img] 8[img]/images/graemlins/club.gif[/img] (5 Players)
UTG calls $0.05, CO folds, BTN calls $0.05, SB folds, Hero checks

Flop: ($0.17) 8[img]/images/graemlins/diamond.gif[/img] 5[img]/images/graemlins/heart.gif[/img] 3[img]/images/graemlins/club.gif[/img] (3 Players)
<font color="red">Hero bets $0.15</font>, UTG folds, BTN calls $0.15

Turn: ($0.47) K[img]/images/graemlins/heart.gif[/img] (2 Players)
<font color="red">Hero bets $0.15</font>, BTN calls $0.15

River: ($0.77) 7[img]/images/graemlins/spade.gif[/img] (2 Players)
<font color="red">Hero bets $0.50</font>, <font color="red">BTN raises to $1.50</font>, Hero calls $1.00

Pot Size: $3.77 ($0.15 Rake)

BTN had 4[img]/images/graemlins/spade.gif[/img] 6[img]/images/graemlins/spade.gif[/img] (a straight, Four to Eight) and WON (+$1.77)
Hero had 7[img]/images/graemlins/club.gif[/img] 8[img]/images/graemlins/club.gif[/img] and LOST (-$1.85)

I bet for value on the flop, and made a little blocking bet to prevent a bluff on the turn, and was planning to check it down, but since I hit two pair on the river I went on made a fair bet. When my opponent re-raised me, since he didn't show much power before, I assumed it likely that he has an AK or some kind of other overcards that he was chasing with. Maybe even an A5 or an A3.

Did I play this hand correctly? Should I have folded to his re-raise?