For starters this is a 2002 Chevy Blazer LS 4x4, 4.3l 4l60e, last night I had to drive home in 4wd due to snow and ice on the roads and when I got out of the blazer after arriving home I was slapped with that strong burnt tranny fluid smell. On the trip home I stayed roughly around 30 mph in 4wd Hi and only got upto 45 mph at the most for a total of 10 seconds and I commute 36 miles. Prior to this I never have known the tranny to overheat but I have also never driven in 4wd for such a prolonged period of time. The transmission also whines while in 4wd or atleast something under the front end does and only in 4wd. I am hoping you guys can point me in the right direction and that I didn't damage my tranny really bad.

 

Besides the output shaft there is no difference between a 2wd and 4wd transmission. The change is done in the transfer case which is separated by a seal. There is a vent tube that runs up to the firewall. I would guess the burnt/ hot smell is coming from there. There have been a lot of these overheating transmission threads started due to the recent storms.
I wish I knew more about transfer cases to give you more information but I would start by checking fluid in both and see which one is burnt or smells the worst.

 

After some poking around today I believe my original observation was incorrect. I recently replaced a good chunk of the cooling system (radiator, heater core, overflow reservoir, and all hoses) after a couple of weeks I noticed I was slowly losing some coolant and have only been able to check that out today. I have a leak somewhere above the bellhousing on the passenger side, and I am unable to find the exact origin of the leak. I have triple checked all the new hoses and the cabin for possible heater core leaks, so maybe it was burnt coolant I smelled as my sinuses are a bit messed up at the moment.

This coolant leak has slowly gotten worse, at first I was able to go about 3 weeks w/o adding coolant and now it went through half a gallon in 3 days. Also Friday when I added coolant I noticed air bubbles escaping through the overflow reservoir, so this leak is not only losing coolant but pulling in air. And the leak only starts once the engine is at operating temperature

 

Using a small mirror, look at the back side of each head where the intake manifold meets it, (close to the firewall and not much room back there). Also look along where the intake manifold meets the cylinder head, on both sides of the engine. Sounds like you have an intake manifold gasket leak. Needs to be repaired ASAP, before coolant can get into the oil.