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.