Sounds like a hose or plasticky part has come loose or somehow shifted, or a heat shield isn't doing its job, and now you're plagued with a stinky ride.
Idling higher than usual suggests that the throttle cable is out of place and/or bound up, possibly being the source of the burnt rubber smell or its movement is being affected by it.
The cruise control cable could also be an issue here, as well as the CC canister and rubber hoses.
Being "new to fixing cars", you might wanna find a YT video of a Gen1 SC Xterra to see what things should look like under the hood and then compare it with yours. If you see something different or out of place, it could be helpful to inspect that more thoroughly, or it could just be something the other owner did but has no bearing on your issue.
Probably the biggest thing to keep in mind is that you're looking for stuff that gets hot, so look more closely at those items: heat shield, exhaust manifold, cats, etc. Also, look for parts that are rotating (belts, pulleys, etc.) to see if anything is touching them that shouldn't be.
If you're not sure what you're looking at, take pics, share 'em here, and there will be plenty of members who'll know what it is and give you a nudge in the right direction.
Someone may also have already dealt with this and knows just where to go, saving you some time and effort.