HELP! Two days ago I had the defrost on high heat with the window and mirror warmer on as well. The Recirc was on with the light on and the A/C was off with its' light on. It was foggy and I needed to clear the windows. After about 10 min of this the instrument panel started to smoke and I smelled burnt electrical wire. Smoke rose from below the recirc and A/C lights as well as the fan switch. Fortunately I arrived at work and shut the engine down and shut everything off. Now the lights do not illuminate (before the both were on, as they should be even with the fan off). I have not tried the fan but the rear window and mirror heater works. There is STILL a smell of burned electrical wire in the car even after hours of being shut off. What is causing this? Why don't the lights on the Recirc and A/C work? Isn't there supposed to be a fuse that blows to protect against this?

Please help this is a serious problem.

The rear window defrost has nothing to do with your problem. You will need to take off the kick plate on the driver's side and get a good flashlight and take a look at the wiring.
I suspect the fan speed resistor gave up and fried itself, but you need to check the wires going into and out from it.

Klaus
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The 164 has a new home, all I am left with are a 95 854T and a 98 V70R :)

Smoke was coming out from under the recirc and a/c switches. Is the fan speed resistor located near them? Exactly where is the fan speed resistor switch?

I do appreciate your help.

The fan and resistor are under the dash connected to the firewall. Junk yards sell the ECC unit for about $200.
The ECC unit pulls out of the dash, but the radio needs to be removed first so you can get a hand under the ECC and pull hard. It is possible that the fan switch wires fried and if that is the case, I would suggest getting a new unit.

Before you order a "new" unit, you will have to pull yours and get the model number from the stickers. They are different depending on year and build date.

Klaus
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The 164 has a new home, all I am left with are a 95 854T and a 98 V70R :)

Hi Sunstatepilot,
Unless you are very handly with tracing electrical faults you're pretty much stuck with taking your car to a service shop as you could be at risk of an electrical fire. There are a variety of possible causes for the burnt wiring and you fuses will not always blow unless the current exceeds the amperage of the circuit they protect. Wiring will still be prone to burning up even if the current does not go over 15 amps if you have a ground fault, (short circuit).
You need to find the point at which your wiring is grounding out which can involve removal of your Climate Control console, your glove box, knee bolster,
etc. Depending on your luck and skill removal of the above can take @ 2 - 3 hours.
Good luck.

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Luck favours the prepared.