MAN I wish I had bet more than .50 cents now. Good advice!
The low raise was intended to indicate strength. By raising 20% of the pot, I was trying to say: I have a strong hand and I want you to call. I think that villian interpreted as: I have a medicre hand so here is a raise to try to scare you out of the pot. If he 3-bet with that in mind, than it was well-played on his part. However, if he really did have a set or a straight or even 2 pair (he had a wide range); than folding was correct.
Next time I will play TPTK with more balls.