Electrical Questions? Ask an Electrician Online.
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It really sounds to me like the internal switch that is controlled by the remote is short circuiting. I do NOT recommend you try repairing this yourself. Either replace the entire unit or have an electrician help you diagnose the wiring. The smell has me concerned
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1) Is the remote receiver located under the ceiling fan canopy cover or inside the fan motor area?
2) Do you have either a 2 wire lead AC voltage tester (a contact type) or a multi-meter available?
3) Does the fan have pull chains?
I will opt out of the question since I have not heard back from you.