AA hand, villain tells me he turned a flush

[BungalowBill]

Hi all. I've been reading the forums for 2+ years, but this is my first post. I've been playing for about 4 years and recently made a resolution to actively improve my game. A big part of that is to become involed in the 2+2 forums; I'll do my best not to be a noob. [img]/images/graemlins/smile.gif[/img]

The villain in this hand is pretty loose-passive. I don't have the PokerOffice stats with me, but I remember him being ~50%VP$IP and virtually no PF raising.

PokerStars No-Limit Hold'em, $0.10 BB (8 handed) Hand History Converter Tool from FlopTurnRiver.com (Format: 2+2 Forums)

saw flop|<font color="#C00000">saw showdown</font>

<font color="#C00000">UTG+1 ($11)</font>
MP1 ($5.40)
MP2 ($9.90)
<font color="#C00000">Hero ($34.95)</font>
Button ($8.75)
SB ($10.55)
BB ($9.20)
UTG ($9.75)

Preflop: Hero is CO with A[img]/images/graemlins/heart.gif[/img], A[img]/images/graemlins/spade.gif[/img].
<font color="#666666">1 fold</font>, UTG+1 calls $0.10, <font color="#666666">2 folds</font>, <font color="#CC3333">Hero raises to $0.5</font>, <font color="#666666">3 folds</font>, UTG+1 calls $0.40.

Flop: ($1.15) 2[img]/images/graemlins/club.gif[/img], 6[img]/images/graemlins/club.gif[/img], 7[img]/images/graemlins/heart.gif[/img] <font color="#0000FF">(2 players)</font>
UTG+1 checks, <font color="#CC3333">Hero bets $1</font>, UTG+1 calls $1.

Turn: ($3.15) J[img]/images/graemlins/club.gif[/img] <font color="#0000FF">(2 players)</font>
<font color="#CC3333">UTG+1 bets $2.5</font>, Hero calls $2.50.

River: ($8.15) 3[img]/images/graemlins/heart.gif[/img] <font color="#0000FF">(2 players)</font>
UTG+1 checks, Hero checks.

Final Pot: $8.15

I thought at the time that there's no way he bets out that big when he turns the flush, but losing my stack with big pairs is a leak I'm trying to patch.

Thoughts? Too weak?