1- I heard that sometimes you may have to take him to a CM or something and have them updated.
2- I would like to know exactly where because I am taking one I just bought with me and want to make sure he is working good.
1- Pal Mickeys have never been able to be updated.
That was a rumor that simply wouldn't die.
If the Pal was malfunctioning, he could be "re-started/re-booted" by certain CM's in MK and DHS
using a special small computer which was connected to an infrared pod... that sent
coded signals to Pal Mickey's internal computer processor chip, through an IR sensor in Pal's nose. (No, I'm not making this up,

)
2- I doubt that you'll need to have this done.
Most Pal's simply WORK as they are supposed to, year after year.
If your Pal does NOT work, I don't know if anyplace at WDW still has the
proper apparatus to perform the reboot.
Best chance, ask at MK's Emporium
or at DHS's photo store next to Oscar's Service Station near the front of the park.