He is a fortune teller machine located in the South Seas Traders shop area (now a dining area for the Bengal Barbecue) that takes the form of an eccentric shrunken head that bills himself as "The Jungle's Only Self-Service Witch Doctor", diagnosing guests with strange jungle diseases and offering equally strange solutions.
Ned also appeared in Virtual Magic Kingdom running a shop.
Tales from Adventureland
Shrunken Ned plays a major role in this book series as the grandfather of protagonist Andy Stanley and the leader and Keymaster of the Jungle Explorers' Society.
The first book, The Keymaster's Quest, begins at his funeral at his home in Oregon, after his family assumes the worst from a mysterious disappearance taking place during an expedition to a hidden temple in the Amazon. His grandson Andy Stanley is the one family member who actually attends the funeral, which otherwise includes his friends from his organization. As Andy explores the mansion and solves several puzzles, he finds that Ned is still alive as a sentient shrunken head. When exploring the temple, he was ambushed by a witch doctor/assassin named Bungalow Bob working for a sinister group known as the Collective and transformed into a living shrunken head. The funeral was an elaborate ruse to trick the Collective into thinking he was dead. He appoints Andy as the new Keymaster for the J.E.S. and assigns him to a mission to Hawaii to prevent the Collective from awakening an evil Tiki God with a key hidden in the Enchanted Tiki Room. He later becomes more actively involved in the adventures through using his robotic butler Boltenhouse as a mechanical body.