Mr Goodwrench,
Break out the hot dogs and beer! It sounds like it's doing what it suppose to do, slowing down the blower motor and getting hot in the process. The only missing info is..is the switch rated for that duty? I would guess that a rheostat like that would be rated for WATTS. This would be dependent on the supplied voltage and draw of the motor. Maybe the treasure you found in the glove box isn't husky enough to shunt the current without turning into a barbecue, it's too small. Could this be possible!
Stuart