Nutflush beat, but played it correctly?

[Dsquarednl]

It sucked that I lost this hand, but did I play it correctly? Would any of you guys have played this differently? It's just a bad beat, and I don't think it was avoidable, but maybe someone thinks it was. He should have folded his set when I reraised him and the flush was actually pretty obvious, right?

PokerStars No-Limit Hold'em, $0.02 BB (5 handed) Poker Stars Converter Tool from FlopTurnRiver.com (Format: 2+2 Forums)

Hero ($2.50)
UTG ($0.65)
MP ($1.38)
Button ($7.05)
SB ($1.94)

Preflop: Hero is BB with K[img]/images/graemlins/diamond.gif[/img], A[img]/images/graemlins/diamond.gif[/img].
UTG calls $0.02, MP calls $0.02, <font color="#666666">1 fold</font>, <font color="#CC3333">SB raises to $0.1</font>, Hero calls $0.08, UTG folds, MP calls $0.08.

Flop: ($0.32) J[img]/images/graemlins/diamond.gif[/img], 6[img]/images/graemlins/heart.gif[/img], 9[img]/images/graemlins/diamond.gif[/img] <font color="#0000FF">(3 players)</font>
<font color="#CC3333">SB bets $0.1</font>, Hero calls $0.10, MP calls $0.10.

Turn: ($0.62) 3[img]/images/graemlins/diamond.gif[/img] <font color="#0000FF">(3 players)</font>
<font color="#CC3333">SB bets $0.62</font>, <font color="#CC3333">Hero raises to $1.24</font>, MP folds, <font color="#CC3333">SB raises to $1.74</font>, Hero calls $0.50.

River: ($4.10) 6[img]/images/graemlins/spade.gif[/img] <font color="#0000FF">(2 players)</font>

Final Pot: $4.10