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I'm not familiar with that specific model, but are you sure it does wind the film on nicely?
Red light could mean it's not happy with the way it wound on / maybe didn't catch the film leader properly. Does it sound "normal"?
Try a few more times, giving it a bit more of the film leader or a bit less and see if it catches on.Could be that the motor is busted in some way (which might explain the burnt smell), if that's the case it would most definitely not be worth it to repair the camera.
Hey all, my son has a Nikon RF like the one in the pic, that we got for a steal from someone on here. Its been great for him (he's 6) but now when we put a film in, although it winds it on ready to go, a little red light comes on in the viewfinder and it won't take a picture. It also smells a little like burning.
Any idea is this is easily fixable, or is it new camera time?