Could I have played this any more passive?

[Silly String]

I messed this hand up from the get go. I am not too proud to post it though. I guess I was scared of the sethunter and all the callers. My parranoia told me AK or AA was out there. I know where I F'ed up the rest of the hand post flop.
I need comments on my pre-flop play here: What do you think of the limp/call 5BB with KQos lots of people in the pot, I close PF action?

PokerStars Game #3257771197: Hold'em No Limit ($0.10/$0.25) - 2005/12/06 - 13:33:26 (ET) Table 'Medusa' Seat #9 is the button
Seat 2: Stars_MVP ($39.75 in chips) semi-loose, solid
Seat 4: Silly String ($28.45 in chips)
Seat 7: MJO1386 ($6.50 in chips) semi-poor
Seat 8: Cutsss ($46.70 in chips) -- SetHunter
Stars_MVP: posts small blind $0.10
*** HOLE CARDS ***
Dealt to Silly String K Q
Silly String: calls $0.25
2 folds
MJO1386: raises $1 to $1.25
Cutsss: calls $1.25
Stars_MVP: calls $1.15
1 fold
Silly String: calls $1
*** FLOP *** 5 3 K
Stars_MVP: checks
Silly String: checks
MJO1386: bets $1
Cutsss: calls $1
Stars_MVP: folds
Silly String: calls $1
*** TURN *** J
Silly String: checks
g@v 999 has returned
MJO1386: bets $2
Cutsss: calls $2
Silly String: raises $4 to $6
MJO1386 said, "as"
MJO1386: calls $2.25 and is all-in
Cutsss: calls $4
*** RIVER *** 8
Silly String: checks
Cutsss: checks
*** SHOW DOWN ***

[bdawg56kg]

Is this a full table or 4-handed, because it makes a BIG difference. In a 4-handed game I raise KQo every time in every position and bet every street aggressively. I guess I don't understand your line. You absolutely cannot have this pot go to the turn 3-way. It seems like you want to keep the pot small by check/calling on the flop, but then you throw in a weird CR on the turn.

If you fear AA or AK so much you must bet the flop hard to get that info, otherwise just fold preflop. If this is a full table, I NEVER limp/call with KQo OOP. I only play it for a raise in LP or from the blinds.

[Pelion]

I dont mind limping or raising preflop with KQ. I do either/ both depending on the table. If it gets raised behind me by anyone i dont have a very loose aggresive read on i fold it preflop though. Its far too easy to come up against AK, AQ, KK, QQ and be totally destroyed postflop.
Also preflop any Ace is ahead of you here and you arent getting paid much by AJ type hands even on a KJx flop.

If you come up against a KJ that wants to go allin on Kxx flop then i think you are very lucky but thats more often going to be AK, AA, KK.

I hate calling raises with KQ preflop.

Flop i think has got to be raise or fold i think.

Theres a small bet before you and a call by someone youve said is a set hunter. What is he calling with? either hes beating you with a set or hes drawing to a flush which will beat you. You need to find out now and get out if you are behind. The short stack could well move in with alot of hands. Its hard to give him a hand. His bets seem too small to be AK, KQ, KJ but it could be. Could be alot of hands actually, maybe even JJ or QQ on the flop but hed probably just go allin with JJ when the next J comes.

I dont think you did enough to find out where you were in this hand. Cutsss is probably on a draw and MJO could have almost anything with 2 high cards.
I fold preflop but raise on the flop and go from there