I must admit, this is a tricky problem, which is made worse by the fact that I don't have an OS 9 machine to play with and am working from memory (no pun intended.)

At this point I would suggest you try to start the Mac with extensions off by holding down the Shift key at startup. This will disable almost all unnecessary system add-ons. (Like "safe mode")

After starting up this way, try to open the Memory control panel (It should be in [Your hard drive]: System Folder: Control Panels: Memory) to turn off the RAM disk and lower the virtual memory settings. Then restart and see what happens.

Again, I'm working from memory, and this is a fairly bizzarre situation, so this might not work. But it'd be my first shot.