Dude, you should slap System 7.1 on that machine. You're seriously running 7.5 on a machine with 5mb of RAM? It's going to crawl. I highly recommend dropping back to 7.1 if your software is compatible. It uses way less memory and is typically somewhat faster.
If you drop back to 7.1, turn off virtual memory and you'll find even MORE speed increase. VM sucks. I absolutely refuse to use it because of how much it slows down the system.