Path aliases not updating or setting automatically
The aliases are generated when you create an object in your site and are based upon the pathauto patterns (placeholders) you specify at:

For 6.x: Administer &gt; Site Building &gt; URL aliases, in the "Automated alias settings" tab.

For 7.x: Administer &gt; Configuration &gt; Search and Metadata &gt; URL aliases, in the "Patterns" tab.

Pattern tab provides several default patterns that automatically alias the different content types. 

Settings tab allows to refine length and case, as well as defining if an alias is to be replaced or added to the list.