If you saw and smelled smoke just before the air flow stopped, you probably at least need a new blower motor based on what you've mentioned above. But you may also have another issue, likely a vacuum leak, causing the air to only come from the defroster vents. The system uses vacuum to switch the doors that direct the air flow. The "fail safe" position, in the event of a loss of vacuum, is to the defrost position as that's the most important air flow direction in the event of failure. The vacuum leak is likely the "winding sound" you described.
-Rod