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check for oil leaking onto the exhaust system somewhere ....I had a similar problem with my old ford Contour ...are you sure your smelling burnt oil ..or could it be a bad heater core leaking coolant ..even if its very minor leak ..it will smell funny...
The wires on the back of the switch are getting hot and burning. To test this, remove the radio to get access to the wires. Turn on the fan and check the wires to see if their hot.
I have the same smell in my '87. When I crawled under, I noticed oil on the exhaust near a bend in the pipe directly behind the oil pan (not sure if it's coming from a leaking drain plug, rear main seal or head gasket leak).
could the valve cover gasket be leaking on the back side of the engine near the firewall? I was thinking that it could be leaking down the back of the engine and burning off, and being pickup by the blower motor. Is that possible?