Button is tricky and does bluff. Raise more on turn (I didn't want him to fold)? Should I bet the river? And call when he goes all in?

PokerStars No-Limit Hold'em, $2 BB (8 handed)

SB ($176.40)
BB ($158.10)
UTG ($169.55)
UTG+1 ($121.30)
MP1 ($248)
MP2 ($111)
Hero ($267.35)
Button ($173.70)

Preflop: Hero is CO with , .
4 folds, Hero calls $2, Button calls $2, 1 fold, BB checks.

Flop: ($7) , , (3 players)
BB checks, Hero bets $6, Button calls $6, BB folds.

Turn: ($19) (2 players)
Hero bets $12, Button raises to $24, Hero raises to $42, Button calls $18.

River: ($103) (2 players)
Hero checks, Button bets $123.7 (All-In), Hero calls $123.70.

Final Pot: $350.40

Kalle... I would DEFINTELY call here... he could only have 3 hands that kill you, a 3d, 8d, or 55... I'm not much for odds, so I don't know what the statistical chance for any are, but you can't fold a nut boat... If he's got it, that sucks, but I think more likely than not, he's got a straight or a flush, and not both...
MVP

I should certainly have made a bigger raise on turn. He had [8d]

Yep I was about to comment on the size of your turn raise. If you are only gonna raise $18 more, you might as well just call. But the best play, by far, would be to raise to about $60. From villian's turn play it seems like he hit his flush, or at the least has something like 65. And if he's gonna call a $18 re-raise, then he will most likely call a $30-50 re-raise. Either way, he hit a 1-outer and I wouldn't be too worried. You definately have to call there.

Kalle... THAT SUCKS!!!!! What the hell was he doing even in this hand at any stage w/ K8??? Sorry for the bad advice, then... but I hope you put a note on him so that when you see him again, you can get your money back, plus all of his...
MVP