Maybe a daft question, but it's nothing to do with the heater motor is it?
When the heater motor burnt out on my subaru the electrical smell was similar to burning clutch/brakes. Don't know where the motor is on yours, but just a thought....
Malcolm T 1966 +4 1957 TR3 1963 TR4 1983 LR 110 1985 Robin Hood 2.0l