Top pair on drawy board. What went wrong? What would you do?

[PokerTheorist]

.25/.50 home game. $25 buyin. 6 players. Been playing all night so I have some decent info on the players. Typical for a home game. Loose preflop calls and plenty of gambling.

Hero: $60.
Villain: $200.

UG+1 raises to $2.50. Standard raise this night. His range can be anything from a steal to a strong holding. Villain calls. The call indicates a weaker hand. Any strong hand would be reraised.

Hero is in BB and finds K [img]/images/graemlins/heart.gif[/img] Q [img]/images/graemlins/heart.gif[/img]. Hero calls.

Pot is ~$8.
Flop: Q [img]/images/graemlins/spade.gif[/img] 6 [img]/images/graemlins/club.gif[/img] 7 [img]/images/graemlins/club.gif[/img].
Hero checks top pair. The raiser always continuation bets and I know I can trap him for an extra bet. The raiser bets $4 and the villain calls. The two clubs are scary but either he was calling with a weak second pair or somekind of draw. Hero checkraises and makes it $25 to go. This represents a pot size raise of $8 + 3x$4+$4. The raiser groans and folds which tells me maybe he had something like a mid pair. I thought the villain would relinquish his holding to a stiff bet but after some consideration and saying something about "this is a bad call" he calls. His hesitation makes me think he doesn't have a flush draw. But now my head is clouded. The pot is big and I want to win it.

Pot ~$60.
Turn: [Q [img]/images/graemlins/spade.gif[/img] 6 [img]/images/graemlins/club.gif[/img] 7 [img]/images/graemlins/club.gif[/img]] 2 [img]/images/graemlins/club.gif[/img]
The club is bad for me as I do not have any clubs. I push in for my remaining $30. I am too far in. If he did have something like two pair I still have outs. I cannot give a free card.

The villain goes into the tank. He does not have a flush. The villain tries to start a conversation about whether I have a club. I stone silent. After considering that he would still be up if he lost the villain CALLS! He shows 4 [img]/images/graemlins/club.gif[/img] 5 [img]/images/graemlins/spade.gif[/img] for what turns out to be a straight flush draw.

The pot is $120 and I am all in.

River: [Q [img]/images/graemlins/spade.gif[/img] 6 [img]/images/graemlins/club.gif[/img] 7 [img]/images/graemlins/club.gif[/img] 2 [img]/images/graemlins/club.gif[/img]] 8 [img]/images/graemlins/heart.gif[/img]
The villain makes a straight and takes down the pot.


What should my betting line be here? I know I have only top pair. Was it a mistake to play a big pot with a modest holding? Should I have just called the flop? Should I bet out on the flop?