At what point did this get bad?

preflop?
flop?
turn?
river?
After calling the flop i didnt raise the turn as i have a king in hand and im sure he doesnt have the ace. Id also seen opp pot bet flush draws before so im not sure he has even a pair here, just a flush draw. Turn bet confirmed that.

Read is im super loose here and other opp is tilting big style so although i got rotten odds on the flop i knew if i hit i was getting his stack (or so i thought)
At which point should i fold and how bad a play is this?

***** Hand History for Game 3001920835 *****
0/0 Texas Hold'em Game Table (NL) - Tue Nov 08 07:51:10 EST 2005
Table Table 65604 (6 max) (Real Money) -- Seat 1 is the button
Total number of players : 6
Seat 1: Miffed22001 ( $15.02)
Seat 2: yamhill ( $32.05)
Seat 3: Unsyatisfied ( $4.10)
Seat 4: Atika33 ( $51.50)
Seat 5: skiracr1225 ( $30.97)
Seat 6: vbc603 ( $35.25)
yamhill posts small blind (0.10)
Atika33 posts big blind (0.25)
** Dealing down cards **
Dealt to Miffed22001 [ Kh, 8h ]
skiracr1225 folds.
vbc603 calls (0.25)
Miffed22001 calls (0.25)
yamhill folds.
Atika33 checks.
** Dealing Flop ** : [ 4h, 5c, Th ]
Atika33 checks.
vbc603 bets (0.75)
Miffed22001 calls (0.75)
Atika33 folds.
** Dealing Turn ** : [ 5h ]
vbc603 bets (2)
Miffed22001 calls (2)
** Dealing River ** : [ 3h ]
vbc603 bets (32.25)
vbc603 is all-In.
Miffed22001 ?


Miffed22001 is all-In.
Creating Main Pot with $28.89 with Miffed22001
Creating Side Pot 1 with $20.23 with vbc603
** Summary **
Main Pot: $28.89 | Side Pot 1: $20.23 | Rake: $1.50
Board: [ 4h 5c Th 5h 3h ]
Miffed22001 balance $0, lost $15.02 [ Kh 8h ] [ a flush, king high -- Kh,Th,8h,5h,4h ]
yamhill balance $31.95, lost $0.10 (folded)
Retro999 balance $25, sits out
Atika33 balance $51.25, lost $0.25 (folded)
skiracr1225 balance $30.97, didn't bet (folded)
vbc603 balance $49.12, bet $35.25, collected $49.12, net +$13.87 [ 7h 6h ] [ a straight flush, seven high -- 7h,6h,5h,4h,3h ]

well, at least the winner flopped a one card draw, for starters. you had to catch two to the flush AND two runners for a gutshot. i don't have a problem w/ calling the BB for Kx s00ted. but just don't forget WHY you called w/ that hand in the first place: to flop a flush draw (or perhaps the cards don't count, but you know what i mean, you're not looking for a straight here i hope!).

i dunno, w/ that paired AND flush board, that dude was definitely going all in there no matter what. tough titties.