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Setting WebMethodAttribute.BufferResponse to true, serializes the response of the XML Web service method into a memory buffer until either the response is completely serialized or the buffer is full. Once the response is buffered, it is returned to the XML Web service client over the network. When WebMethodAttribute.BufferResponse is false, the response to the XML Web service method is sent back to the client as it is serialized. In general, you only want to set WebMethodAttribute.BufferResponse to false, if it is known that an XML Web service method returns large amounts of data to the client. For smaller amounts of data, XML Web service performance is better with WebMethodAttribute.BufferResponse to true.
When WebMethodAttribute.BufferResponse is false, SOAP extensions are disabled for the XML Web service method.