Yes, definitely rest that injury - a knee is a complicated joint and is easily turned or twisted as you have found out. Rest and repair now and your body will thank you for it in the long run.
As people have mentioned running form, I would like to emphasise that point too.
I've been a treadmill runner for many years, but in the last 6 months or so have done all my running outside. And it is now that I've realised just how bad my form was.
I've made a conscious effort to improve my form, land correctly, keep my shoulders and arms relaxed, etc....and I have to say I've noticed a marked improvement in both my running and also how I feel afterwards. My legs feel worked but not in pain, my feet feel warm but not as if I've done any damage...... it's so nice to be able to go about my every day life and not feeling that ever-present constant niggling injury that had plagued me for so long.
Good luck with your knee healing - and when you do get back into it, take it steady for the first few times.
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