We own a 2003 Montero Limited. Awesome car.

When we drive uphill (30-65mph), we notice a burnt clutch/brake type smell. After
the road levels out..no smell.

We've checked the brakes, belts etc. Nothing rubbing.

Otherwise, there's no similar smell..only when going uphill.

Periodically the transfer case warning light comes on. Of course when we went
to the dealer it didn't happen. There were no hills near the dealer, so it was a
wasted trip, but the diagnostic didn't turn anything up.