We loved loved loved our Pal Mickey. He was a highlight of our trip in 2004. We plan to buy a newest version on our trip this year.
In reference toy our question about his problems, we actually had to go through 3 before we got one that worked. Our first one didn't work out of the box, so I chose a second. He seemed to work for a while, but then malfunctioned in various small ways. They tried to reset him, and had us go out and test him, and he wasn't working, so they gave me my third, which was great and worked the rest of the time.
I still remember the first moment I was complete awed by the technology this little "stuffed animal" possessed. We had already been using him for a day, and was enjoying him immensely (and got to meet some very neat people who walked up to ask us about him and chat us up because of him), when we took him to Epcot. We were walking from World Showcase to Future World, and when we were nearing the end of the lake, Mickey chuckled (letting us know he wanted to tell us something). He pointed out a walkway which cut at an angle to the regular walkway, which we hadn't noticed (and may never have). He told us it was a beautiful rose-lined walkway we could try instead of the usual walkway. Sure enough, there it was, and we made a discovery we would probably never have found on our own.
Pal Mickey is a gem!