So I was driving my 02' GT with the air conditioner on and I started smelling this "burning smell". Then smoke started coming from the vents. I pulled over and popped the hood, there was no smoke but some water (looked like condensation) in the passenger side corner near the firewall. Any ideas what happened? Thanks

 

Sounds like the heater core is going bad, or a heater hose is leaking in the Air Exchange box on the passenger side.

 

On a hot day there will be a ton of condensation on most of the AC components. You most likely have a leak in one of the systems, be it the heat side or ac side. Does it still work properly and just smell? Usually the AC clutch going south would be a burning. Its so hard to diag over the web with no pics or first hand experience. Could you be more specific?

 

Unfortunately there is not really much more for me to tell. There is no leaking that I can see. I didn't try and run the AC after this little incident

 

If it hasn't done it since you quit using the A/C, that might mean the Air Cond Evaporator in the box might be the problem. Not sure. R134 has oil in it. You might have smelled that out of the vents.