Hello Dusty (and Surfer),
I don't think the mention of Paraffin by the OP was a misnomer, It was as far as far as I can read the primary reason for his question. He was unsure whether that meant there was a problem with the Truma heater, and that is a very valid question, if you don't know the answer.
Based on my knowledge of Truma's products, I know there is no material in the heater that will produce the classic paraffin smell. So reassurance to the OP on that matter.
I was intrigued by Surfers comment, and in the context of the thread I was wondering if he was suggesting he had experienced a 'paraffin' smell by his use of the phrase 'this smell' which in the context of the thread would be paraffin!.
The vast majority of of products that use a paraffin base are quite flammable, and as such it would he highly irresponsible to use them in a location near a high temperature heat source.
When I last checked Truma do not produce 'lagging' (wadding or wrapping) for their ducting, only secondary larger diameter tubing. So if Surfer has lagging then it is unlikely to be a Truma product, and if it does produce a paraffin smell, the I suggest its the wrong application.