Hello everybody. This is my first post so please be gentle on me!
I am new to playing poker, but have been doing reasonably okay (as in I am up most sessions $25 NL at Empire) and I would like to thank each and every one of you for the wonderful advice on this site.
Anyway, what do you think of my play on this hand - was I right to fold? I figured that the hand that would help me most (AD) would probably cost me more than it would gain me. But it turned out it didn't. However, do you still think I made the correct call?

#Game No : 1020482843
***** Hand History for Game 1020482843 *****
$25 NL Hold'em - Monday, October 04, 11:59:33 EDT 2004
Table Table 12561 (Real Money)
Seat 7 is the button
Total number of players : 10
Seat 1: leecay ( $20.25 )
Seat 3: Katikies ( $25.85 )
Seat 4: pamu5 ( $52.45 )
Seat 7: Ernie_E ( $56.1 )
Seat 8: Edwin789 ( $38.6 )
Seat 10: stackford ( $35.9 )
Seat 2: Hero ( $22.25 )
Seat 9: rysimm1979 ( $11.9 )
Seat 5: herb19192 ( $44.05 )
Seat 6: krazyjim ( $25 )
Edwin789 posts small blind [$0.25].
rysimm1979 posts big blind [$0.5].
krazyjim posts big blind [$0.5].
** Dealing down cards **
Dealt to Hero [ Kd Qd ]
>You have options at Table 11432 Table!.
stackford folds.
leecay calls [$0.5].
Hero raises [$1].
Katikies folds.
>You have options at Table 11432 Table!.
pamu5 folds.
herb19192 calls [$1].
krazyjim calls [$0.5].
Ernie_E folds.
Edwin789 folds.
rysimm1979 calls [$0.5].
leecay calls [$0.5].
** Dealing Flop ** [ Ah, 2d, Jd ]
rysimm1979 checks.
leecay bets [$3].
Hero calls [$3].
herb19192 calls [$3].
krazyjim folds.
rysimm1979 folds.
** Dealing Turn ** [ 7c ]
leecay bets [$4].
Hero folds.
herb19192 calls [$4].
** Dealing River ** [ Ad ]
leecay bets [$5].
herb19192 raises [$10].
leecay calls [$5].
herb19192 shows [ 7d, 8d ] a flush, ace high.
leecay doesn't show [ Ac, Kc ] three of a kind, aces.
herb19192 wins $40.15 from the main pot with a flush, ace high.