The shop interior was a full built set, but exterior shots were filmed on a backlot in Universal Studios, California—not in New York. Verified via production stills.
Paul’s spirit is restless because he never met his son, Michael, and he needs Melinda to deliver a final message. Melinda’s investigation leads her to Michael, who is initially skeptical of her abilities. However, after Melinda provides specific details about the Pentagon's records, the Army eventually recovers Paul’s remains, allowing Michael to find closure and Paul to finally "cross over into the Light". ghost whisperer season 1 ep 1 verified