good pair, dangerous flop

[krakajak]

I get Kc Tc in the big blind. 7 people see the flop, which is 8h, 9h, Td. Top pair and good kicker, but dangerous flop. Small blind comes out betting. This is a loose limit game, and I know a raise wont scare the draws away, so I fold. I'm the only one that does.
Kh came on the river, and SB comes out betting again. Now everyone folds except 1 guy. 2d comes on the river, SB bets and folds the other player, so I don't get to see SB's cards.
2 questions: 1) should I have folded on the flop? and 2) if I had stayed in, when Kh came on the turn, did that strengthen my hand by giving me 2 pair, or weaken it by possibly giving one of the other 2 players a flush?

[ballbp]

That's the problem with the very loose games. You can hardly tell what the hell some of these guys are thinking, and mainly what they're playing. If you had stayed in, once that third heart hit you would have had a decision to make. Two pair is hard to lay down in that situation but I've seen low flushes win too many times to say it's an automatic winner. Had you been at this table for a while and seen how this guy "usually" betted? Tough call there but hey, that's why it's such a great game.