The pinnochio paradox goes as follows: Those familiar with Pinnochio know that whenever Pinnochio tells a lie his nose grows. So the thought process is that if he says "My nose will grow." this is a lie, thus his nose would grow, but if his nose grows then he is telling the truth which means his nose will not grow, so he is now telling a lie which creates a loop.
This paradox is assuming his nose is acting in our 3 dimensions, which it could be, but on the other hand it could be acting outside of our universe. It's like if your programming, and you refer to a variable which doesn't exist or hasn't been defined locally. So with this line of thinking we can resonably say that if Pinnochio says my nose will grow, he is telling a lie which means his nose will grow. The truth has not been changed although his nose has grown, this is beacuse his nose is seperate from our plane of existance, if that makes sense. But than again this is on the assumption that the nose works that way and that it is magic. What happens if it is pyhsical, tangable thing that takes up space in our universs (I find this unlikely just for the simple fact that when his nose does grow it just seems to conjure up new matter, which obviously goes against the laws of the universe).