I think the key element is that you're sandwiched. The big blind's raise was "pointless" but at the $25 NL game it may well mean that he has a real hand. So a flat call is out. At that point it's raise or fold. And on that board I prefer the fold. Top 2 is good but that's about the worst board I can imagine for top 2.

Thanks for the feedback guys. I know in most situations I would most likely be ahead and if I hadnt taken so many bad beats in the few days before this hand I might have made a small raise to feel out the table. But, the way the cards seem to fall on party poker, I wanted no part of it. I would think it was a close enough decision that either method would have been alright.