Handy Manny is usually in front of the Playhouse Disney show at Disney Hollywood (MGM) Studios. When we were there in October, he was switching off with Jojo and Goliath every half hour. He seems pretty regular in that location, so you have a good chance to find him.
Yup, we met him right outside of the Playhouse Disney show.
He wasn't out yet and there was just one or two people in line. My kids weren't too interested in meeting the characters, but my youngest was completely in awe when he saw Manny.
Handy Manny for the ds, princesses for the dds and characters galore...wonderful! If they produced some Wiggles and Hannah Montana look-a-likes, I don't think my kids would ever leave the park.
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