As per http://minetweaker3.powerofbytes.com/wiki/Tutorial:Item_Renaming, it should, but it doesn't. I did not get any error messages when I attempted to do this.

Though, it could be because I'm doing this on the server and not on the client.

Renames have to be done on the client.

Whelp, putting it on the client and restarting the client didn't work either. Neither is trying to remove something from a misspelled oredictionary entry. Here's the whole script; only the last three lines work:

<morebees:diamondFragment>.displayName = "Diamond Fragment";
<morebees:emeraldFragment>.displayName = "Emerald Fragment";
<ore:nuggetDiamod>.remove(<morebees:diamondFragment>);
<ore:nuggetDiamond>.add(<morebees:diamondFragment>);
recipes.addShapeless(<morebees:diamondFragment>*9,[<ore:gemDiamond>]);
recipes.addShapeless(<morebees:emeraldFragment>*9,[<ore:gemEmerald>]);