Exactly. I mentioned Shrek for a reason. It was (and still is) hugely popular in my country (Poland), and one of the reasons for that is the deep localization. They replaced original jokes and pop culture references with local ones.

@daxelrod: Wow, thanks for that. Quite interesting. I always wondered about how that was done and if it was a direct conversion of sorts but I guess it's not. Very interesting.

I just have to ask: How do you know this?

All of this information comes from the teacher of a Spanish class I took (we watched the Latin American version of Shrek in the class). I wish I had some more tangible sources to cite.

EDIT: http://www.imdb.com/name/nm0220240/otherworks: "Jeffrey Katzenberg and Dreamworks allowed [Eugenio Derbez] not only to dub Donkey's voice, but to translate and adapt the script of "Shrek" and "Shrek 2" to make it more appealing to Latin America"

I also remember that the Gingerbread Man was one of the characters who was altered, but I don't remember the name of the Latin American replacement.

Gingerbread Man is translated as "El Hombre de Jengibre", which was previously unknown to Spanish speaking children.

What was relocalized was the Muffin Man nursery rhyme (http://en.wikipedia.org/wiki/The_Muffin_Man), which was substituted by Pinpon's ronda song:

Pinpon is a puppet very handsome and made out of cardboard. He washes his little face with soap and water. He untangles his hair with an ivory comb. And in spite of the hair pulling he cries not nor even winces.

Ah! Thank you, you're absolutely right, I misremembered the character.

I remember the Hindi translation of Aladdin getting a bunch of critical acclaim too