Cassie it could be the clutch slipping or any number of things.
Recently on my trip to Qld I had the same thing but that may have been caused by me being an idiot and letting the clutch out under quite high revs to get up a driveway while still rolling backwards.
The smell disappeared very quickly.

Were you riding the clutch while reversing as this may have caused some clutch slip and the smell. But you had smoke also, I didn't.

Only suggestion from me is see a dealer or a reliable mechanic just to check it. How far from home are you?

Any others with suggestions to help her out???

I have had clutch slipage and the smell tends to stay for a long time. I was taking off from some lights up a hill with a rather heavy trailer and this was before I knew about the 450 kg load limit!!!

I have not had any further problems since.

I have just discovered a new point of interest - the water in the radiator is a rust brown colour and felt oily - does this tell me much. .... we did the watch and see if it bubbled when the car was running and could not deduct if it was the head gasket as we did not see any bubbles....
I also have not noticed any heating problems....hmmm.
Not sure if I should risk driving it to a mechanic to get a mobile out - any suggestions - I really appreciate your help so far. thank you.

chief dont lie u were trying to do burn out in the pt reving it hight and letting it out.

Ok i wont go off topic to much hope it works out sommercassie.

Welcome.
Sounds like clutch slippage. Another possibility - do you have Air Con on?
The A/C compressor can freeze and cause belt slippage and a bad smell - but you would have no cold air.

How does the radiator coolant look? Milky/cloudy, or clear? (I know you said brown)

chief dont lie u were trying to do burn out in the pt reving it hight and letting it out.

Ok i wont go off topic to much hope it works out sommercassie.

Hey Craig I wouldn't do that, you know me.

All sounds interesting but agree with QuicksilverDon to check the other things as well.

... so here is the update.. I went out today to have the new tyres fitted, and stopped into a transmission place - who could not get it to slip' but could smell the burning clutch smell - he said just keep driving it since he couldn't get it to slip and did not think there was a problem.

He suggested that the problem could just have been from reversing back up the hill putting extra strain on the clutch.... I also mentioned to him that my dad suggested that it took a lot of letting out of the clutch before it 'took up' but I had not seen this as a problem as it seems to have always been this way - are the chryslers pt's known for this? - we have only had it for 9 months.
I am inclined to have Chrysler look at it, when it is due for it's service in 4,000kms, but will be driving it back home 2 hours drive tomorrow and hope that all goes well. - there is still a burning smell (clutch), not as bad as yesterday, and no smoke.

I've had a similar experience with my 04 Manual usually when driving around where theres lots of small hills(Cronulla area) Mine would slip mainly in 2nd going up hills with some smoke. mechanics where i work picked up the slipping clutch before i told them but said it was nothing serious. When i told em about sometimes there is a bit of smoke. They did not know why that was happening but later on when it was been serviced it was noticed that the rear main seal was leaking slightly and there may of been some oil seepage into the clutch??? Which could cause it too smoke.

... hmm, that is my husbands first idea - will look back into it - much appreciated.

I've had a similar experience with my 04 Manual usually when driving around where theres lots of small hills(Cronulla area) Mine would slip mainly in 2nd going up hills with some smoke. mechanics where i work picked up the slipping clutch before i told them but said it was nothing serious. When i told em about sometimes there is a bit of smoke. They did not know why that was happening but later on when it was been serviced it was noticed that the rear main seal was leaking slightly and there may of been some oil seepage into the clutch??? Which could cause it too smoke.
And slip!

Um yeah of course that too!!