E420

This is a 1997 E420. Shortly after turning on the air condition unit there was this cracking noise coming from something rotating inside the compartment ( maybe the fan motor) alone with a very bad burnt odor. Shortly after this experince, I turned the air condition/hearter unit off. Does anyone knows what is the problem?

Everything was fine until I braked for a red light about a mile down the road. Then the engine started sputtering and "lurching" - felt like...

The memory settings on my '97 E420 only work for the seats. I know the drivers side is also to include the mirrors and steering wheel, but it is only working for the seat. Anyone else had this issue and know what it takes to fix it?