Hi there!
It sounds like you've got the same kind of problem as the "Heater in car not working" and "Ford Mondeo 1996 Heater Problem" questions on the 100 unanswered questions list. (Although I just answered them so I don't know if they'll still be there)!!
Anyway it definately sounds like your Heater Matrix has gone as the air that the heater is blowing out will contain water and if you've got antifreeze in your coolant system, that'll probably be what u can smell.
The Heater Matrix is an air/water heat exchanger which uses the hot water from your coolant system to heat up cold air for your car. If you get a hole in the Heater Matrix the coolant leaks out and turns into steam before being blown into your car. Your passenger footwell might be wet, it depends on how big of a hole is in your Heater Matrix. So what I recommend is going to your local car accessory shop and buying a bottle or 2 of Radweld, pouring that into your coolant system and then running the car for a while. Actually if your in the UK get the brand Barrs as it's better for this type of thing. Tell the guy (or girl) in the shop what u want it for.
This worked for me when my car was blowing steam out of the heater vents, so I hope it works for u 2!!
Good luck, and let us know how u got on ok?
Glen
December 2005