I would guess you would be right in thinking it had two pumps. I couldn't imagine the drain pump having enough flow or pressure for the wash cycle unless it was a two speed pump. It would also have to have a solenoid and gate mechanism to switch from drain hose to wash hose..too complex for a simple dishwasher.
So I would think the wash pump has burnt out if you wife could smell burning and it wont wash.
How hard would it be to fix..No idea but I bet the pump would be around $80..Put it this way it doesnt work now so you cant make it any worse by pulling it apart and having a go..I bet a repair guy would tell you to buy a new machine anyway.
Mark
June 2009