Bluetruck88:
I think I saw some of your recent postings where you are contemplating building up an AR from parts, and are currently gathering parts, so if you are, I think I understand your question.
A barrel extension is not a separate part you need to be looking at buying. A "barrel assembly" is enough. (usually run $135 retail and up, depending on mfg and features)
The above posts are correct; the barrel extension is what mates the barrel to the upper receiver and is the fixed part of the "locked breach" together with the rotating bolt
(the barrel extension screws onto the barrel and is pinned in place after headspacing. It is then slipped into the upper and held in place by proper tourque of the barrel nut)
The barrel extension is usually (read: "always") installed on AR barrels when you buy an AR-specific barrel from an AR parts retailer. This saves assembly energy on your part for the barrel is already headspaced for a standard bolt, and you don't have to mess with headspacing when installing an AR barrel into an upper receiver.
If you buy an AR-specific barrel, you don't need a barrel extension, for one will come installed.
BTW:
If you buy an upper receiver/barrel assembly, you won't have to mess with anything to do with barrel assembly, and save money on the few tools you'd need to properly mount an AR barrel/barrel nut combo to an upper.
The cheapest kits (read as "most cost-effective for what you get") include completely assembled uppers, and all you'd have to do is mount it on an assembled lower and push in the pivot and take-down pins.
Have fun and good luck with your build.
Cheers, Otto
ETA: I would recommend reading the tecnical manual for AR's, for it not only has assembly and disassembly instructions, but also identifies every part on a standard AR15/M16.
Found here:
USMC tech manual(note: 3mb .pdf file)