Thank you for the reply.

After reviewing the HH from last night I don’t feel so bad. I mean, I definitely should have folded but if Tommy42366 wasn’t there I would have paid off the other guy with the set anyway.

PokerStars Game #1988009923: Hold'em No Limit ($0.01/$0.02) - 2005/06/28 - 00:00:30 (ET)
Table 'Pandarus II' Seat #7 is the button
Seat 1: Hero ($2.85 in chips)
Seat 2: mez81 ($3.35 in chips)
Seat 3: Tommy42366 ($3.48 in chips)
Seat 4: CWellman ($2.22 in chips)
Seat 6: Alexmc2 ($0.90 in chips)
Seat 7: greenspit ($4.97 in chips)
Seat 8: vhilt17 ($5.40 in chips)
Seat 9: Phlunky ($1.86 in chips)
vhilt17: posts small blind $0.01
Phlunky: posts big blind $0.02
*** HOLE CARDS ***
Dealt to Hero [Qs Ah]
Hero: raises $0.13 to $0.15
mez81: folds
Tommy42366: calls $0.15
CWellman: calls $0.15
Alexmc2: calls $0.15
greenspit: folds
vhilt17: folds
Phlunky: calls $0.13
*** FLOP *** [Ad 7c Jh]
Phlunky: checks
Hero: bets $0.30
Tommy42366: raises $1.70 to $2
CWellman: folds
Alexmc2: calls $0.75 and is all-in
Phlunky: folds
Hero: calls $1.70
*** TURN *** [Ad 7c Jh] [2c]
Hero: checks
Tommy42366: bets $1.33 and is all-in
Hero: calls $0.70 and is all-in
*** RIVER *** [Ad 7c Jh 2c] [4c]
*** SHOW DOWN ***
Hero: shows [Qs Ah] (a pair of Aces)
Tommy42366: shows [As 7d] (two pair, Aces and Sevens)
Tommy42366 collected $3.75 from side pot
Alexmc2: shows [7h 7s] (three of a kind, Sevens)
Alexmc2 collected $2.86 from main pot
*** SUMMARY ***
Total pot $6.91 Main pot $2.86. Side pot $3.75. | Rake $0.30
Board [Ad 7c Jh 2c 4c]
Seat 1: Hero showed [Qs Ah] and lost with a pair of Aces
Seat 2: mez81 folded before Flop (didn't bet)
Seat 3: Tommy42366 showed [As 7d] and won ($3.75) with two pair, Aces and Sevens
Seat 4: CWellman folded on the Flop
Seat 6: Alexmc2 showed [7h 7s] and won ($2.86) with three of a kind, Sevens
Seat 7: greenspit (button) folded before Flop (didn't bet)
Seat 8: vhilt17 (small blind) folded before Flop
Seat 9: Phlunky (big blind) folded on the Flop

Tommy42366’s bet said two pair but I couldn’t imagine him having AJ. What I failed to notice is that there was another caller also. If I had noticed that (and if I were thinking clearly) then I should fold there.
I am going to try NL one more time but I think Limit is a good option given that I go blind when the pot gets big.