Hand KcAh Tourney

Last Night I was in a limit hold em tournament on pokerstars and had been playing descent through out the tournament. I was sitting on the same table for quiet a while and got a read on shelois as very loose as I had seen him raise oop with 7/9 off and such. So I decided to trap play him if my ace hits if not just drop the hand and find a better spot... so this is how it played out. 

>*********** # 7 ************** 
>PokerStars Game #9935622856: Tournament #50007603, $4.00+$0.40 Hold em Limit - 
>Level IX (500/1000) - 2007/05/15 - 23:25:37 (ET) 
>Table  50007603 17  9-max Seat #4 is the button 
>Seat 1: pinger1962 (6147 in chips) 
>Seat 2: tj18334 (6030 in chips) is sitting out 
>Seat 3: HardatWork50 (22489 in chips) 
>Seat 4: don t spit (8915 in chips) 
>Seat 5: shehelios (37632 in chips) 
>Seat 6: softdraw2 (1538 in chips) 
>Seat 7: ttz76 (21790 in chips) 
>Seat 8: Soap Lady (4030 in chips) 
>Seat 9: Hero (6184 in chips) 
>shehelios: posts small blind 250 
>softdraw2: posts big blind 500 
>*** HOLE CARDS *** 
>Dealt to Hero [Kc Ah] 
>ttz76: folds 
>Soap Lady: folds 
>Hero: raises 500 to 1000 
>pinger1962: folds 
>tj18334: folds 
>HardatWork50: folds 
>don t spit: calls 1000 
>shehelios: raises 500 to 1500 
>softdraw2: folds 
>Hero: calls 500 
>don t spit: calls 500 
>*** FLOP *** [8s Td As] 
>shehelios: bets 500 
>Hero: calls 500 
>don t spit: folds 
>*** TURN *** [8s Td As] [Kd] 
>shehelios: checks 
>Hero: bets 1000 
>shehelios: calls 1000 
>*** RIVER *** [8s Td As Kd] [9h] 
>shehelios: bets 1000 
>Hero: calls 1000 
>*** SHOW DOWN *** 
>shehelios: shows [9s 9c] (three of a kind, Nines) 
>Hero: shows [Kc Ah] (two pair, Aces and Kings) 
>shehelios collected 10000 from pot 
>*** SUMMARY *** 
>Total pot 10000 | Rake 0 
>Board [8s Td As Kd 9h] 
>Seat 1: pinger1962 folded before Flop (didn t bet) 
>Seat 2: tj18334 folded before Flop (didn t bet) 
>Seat 3: HardatWork50 folded before Flop (didn t bet) 
>Seat 4: don t spit (button) folded on the Flop 
>Seat 5: shehelios (small blind) showed [9s 9c] and won (10000) with three of a 
>kind, Nines 
>Seat 6: softdraw2 (big blind) folded before Flop 
>Seat 7: ttz76 folded before Flop (didn t bet) 
>Seat 8: Soap Lady folded before Flop (didn t bet) 
>Seat 9: Hero showed [Kc Ah] and lost with two pair, Aces and Kings 
> 
>This was the seventh time last night I saw a "2 outter" or less. 
I dont even understand how he call the bets on the turn? 

> 
>Then the hand that knocks me out in 48th place... 
> 
>PokerStars Game #9935699004: Tournament #50007603, $4.00+$0.40 Hold em Limit - 
>Level X (600/1200) - 2007/05/15 - 23:30:38 (ET) 
>Table  50007603 17  9-max Seat #1 is the button 
>Seat 1: pinger1962 (4309 in chips) 
>Seat 3: HardatWork50 (19189 in chips) 
>Seat 4: don t spit (16930 in chips) 
>Seat 5: shehelios (42132 in chips) 
>Seat 6: softdraw2 (3376 in chips) 
>Seat 7: ttz76 (13775 in chips) 
>Seat 8: Soap Lady (7730 in chips) 
>Seat 9: Hero (1284 in chips) 
>HardatWork50: posts small blind 300 
>don t spit: posts big blind 600 
>*** HOLE CARDS *** 
>Dealt to Hero [Th Ad] 
>shehelios: folds 
>softdraw2: folds 
>ttz76: folds 
>Soap Lady: folds 
>Hero: raises 600 to 1200 
>ttz76 said, "nh" 
>pinger1962: folds 
>HardatWork50: calls 900 
>don t spit: folds 
>*** FLOP *** [3c 7s 3s] 
>HardatWork50: bets 600 
>Hero: calls 84 and is all-in 
>*** TURN *** [3c 7s 3s] [2d] 
>*** RIVER *** [3c 7s 3s 2d] [Tc] 
>*** SHOW DOWN *** 
>HardatWork50: shows [3d 6d] (three of a kind, Threes) 
>Hero: shows [Th Ad] (two pair, Tens and Threes) 
>HardatWork50 collected 3168 from pot 
>*** SUMMARY *** 
>Total pot 3168 | Rake 0 
>Board [3c 7s 3s 2d Tc] 
>Seat 1: pinger1962 (button) folded before Flop (didn t bet) 
>Seat 3: HardatWork50 (small blind) showed [3d 6d] and won (3168) with three 
of a 
>kind, Threes 
>Seat 4: don t spit (big blind) folded before Flop 
>Seat 5: shehelios folded before Flop (didn t bet) 
>Seat 6: softdraw2 folded before Flop (didn t bet) 
>Seat 7: ttz76 folded before Flop (didn t bet) 
>Seat 8: Soap Lady folded before Flop (didn t bet) 
>Seat 9: Hero showed [Th Ad] and lost with two pair, Tens and Threes 

Should I have just laid down the A/K preflop and waited for the bubble to pop then start playing more hands? Any opinions thanks?