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850 smoking burning smell 850

This just happen and I am wondering about your thoughts. I have a 1997 850 - I noticed a light ab/track come on my dashbord for a few seconds and pulled over to see what it was telling me. When I restarted the car it didn't come back on and hadn't seen it since - and this was over three weeks ago.
I didn't use the car for a week, had my oil change at a volvo repair shop, and didn't use the car for about another week or so. Just took it out to go down the street about a mile and noticed a burning odor. Came back and open the hood to see if something was burning. My parents used it the following day and had no problem -went about 20 miles. Today as they were coming home from a store about 5 miles away they pulled into the driveway with smoke and a burning odor coming from the right front tire area and quickly used a fire extigusher just in case.
We called and the mechanic thought it could have been a brake locking up. Does this sound right? What can I expect for repairs? Is this an expensive fix? and did that light tie into this occurrance? Wouldn't the light have stayed on to inform any driver that there was a problem?
sorry this is so long but the more details might narrow it down. thank you for all your thoughts ahead of time.






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