I hadn't gotten out of line with any fancy play so I decided to try this. The main villian was loose and passive. How bad was my play?

Party Poker No-Limit Hold'em, $0.5 BB (10 handed)

MP1 ($24.32)
MP2 ($20.8)
MP3 ($49.5)
CO ($47)
Button ($49.75)
SB ($83.93)
BB ($146.8)
UTG ($22.25)
UTG+1 ($49.5)
Hero ($53.95)

Preflop: Hero is UTG+2 with , .
2 folds, Hero raises to $2, MP1 calls $2, 1 fold, MP3 calls $2, 2 folds, SB calls $1.75, 1 fold.

Flop: ($8.50) , , (4 players)
SB checks, Hero checks, MP1 checks, MP3 checks.

Turn: ($8.50) (4 players)
SB checks, Hero bets $7, MP1 calls $7, MP3 folds, SB folds.

River: ($22.50) (2 players)
Hero checks, MP1 bets $5, Hero calls $5.

Final Pot: $32.50

Results in white below:
Hero has 7c 9c (one pair, sevens).
MP1 has 8d Ad (flush, ace high).
Outcome: MP1 wins $32.50.

I didn't expect to get so many callers so I slowed down on the flop with just a gutshot and overs. When it was checked around, I didn't put anyone on an over so thought my 7 would be good. The river sucked and he bet so little that I had to call. Was this hand that bad? Anything different besides maybe playing it at all?

4 players seeing that flop is a bit scary, but I don't think a contiuation bet would have been out of line here. Of course your opponent would still have called, but maybe the bigger pot sized bet on the turn would scare him off. Calls like that on the end kill me too. I think they are a big reason my showdown #'s are so bad. You know you are beat, any Ten, Five, 2 pair, or flush beats you here, but the small bet/pot odds convince you to call. Probably should fold it, although I rarely do in that sitch.

You probably should have bet the flop... You're letting anyone draw get there for free...I'm not sure if the draw calls if you bet around the pot, representing a big pair... He valuebet you on the river, and you almost gotta call that, it was so weak...

Other than the fact that you shouldn't have been in the hand, if you decide to play, you have to be more aggressive...

Play crap like that from LP, where if the flop checks around to you, you can bet out and have a decent chance they'll fold. If they don't fold but check-call, you can put them on a draw (flush draw here) pretty easily, and know where to go from there.

I fold that river. At least, I try to really really hard. Sure your odds are good, but what exactly are you beating besides a stone cold bluff? Is he bluffing with that tiny bet (it's telling you, "Please call me I'm a tiny bet!") -- even one time in five?

So, um, I guess I fold preflop and the river. But I play the flop and the turn the same.