It doesn't really matter what the extensions are called. That one is probably something like "CD-ROM Support" -- I'm sure somebody else will quickly be able to look up the exact name. In fact, re-naming them (or, often, just adding characters to the front of the name) was a common tactic to force them to load in a certain order for troubleshooting or to promote better overall stability.
Worth noting: A full system 7.5 installation is going to use at least that much RAM on both PPC and 68k computers. It will get better if you clean stuff out of your system folder that you know you aren't using. I think 7.6.1 on my PowerBook 1400 is trimmed down to the point of using maybe 8 megs of RAM, although that includes a lot of support for, say, Office and system folder items for most relatively contemporary Claris products, etc.