Yup, changing it inside BeforeRequest works.
One helpful thing you can do is prototype your changes in Fiddler itself (using FiddlerScript) before moving to FiddlerCore.
If you open your FiddlerScript, you'll see the following note:
// If a given session has response streaming enabled, then the OnBeforeResponse
// is actually called AFTER
the response was returned to the client.
// In contrast, this OnPeekAtResponseHeaders function is called before the response headers are
// sent to the client (and before the body is read from the server). Hence this is an opportune time
// to disable streaming (oS.bBufferResponse = true) if there is something in the response headers
// which suggests that tampering with the response body is necessary.
// Note: oSession.responseBodyBytes is not available within this function!
In FiddlerCore, the last possible moment to change bBufferResponse is the ResponseHeadersAvailable
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