Two pair is a funny hand..

Heres whats up:

If you're the one betting it and someone else is just calling down, its usually good. Just don't get carried away.
In the small stakes NL, it takes a lot for people to raise you on two streets because they are usually passive. It sometimes is a top pair raising you, but when someone starts playing back you need to slow down. Get paranoid, look for monsters, and apply your reads. If some aggresive retard is raising you, its probably nothing to worry about, but if that guy from The Rundown (aka the ROCK) suddenly springs to life youre in shit with a weak two-pair. Try to get a cheap showdown.

A lot of recongnizing when twopair is good is having a feel for the players at your table and just having playing experience under your belt.

Also, I think you played the hand fine. No reason to get carried away and definitely hard to fold to tiny raises like that.