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I have a 2000 RX300. It has a strange problem with heating. A/C works great, blows cold air, everything's perfect. However, when I turn on the heating, it doesn't blow air at all. If you put your hand against the air con you can feel heat. So it's heating, but not blowing any air. There's no smell and no other related problems.
Take it out of auto-mode and turn the fan speed ****. See if the display changes and note if the fan/blower speed changes. Also take the cabin filter out and see what is its condition. [ I know you said that the A/C works].