Can't go past 25 mph!?!

[NTobler]

Today driving home from work I started smelling a nasty burning rubber smell, so I pulled over and checked everything out, everything was ok from what I saw, so I continued driving. Everything was fine for a bit but then my engine started revving without my MPH going up everytime I shifted but then finally dropped back down and started speeding up again. After awhile I wasnt able to go past 30 mph the whole rest of the way home. Is this my clutch that is gone, or is this my tranny? I found out that the person whom I bought this car from was recently at the 507 meet and let some kid drive this talon (who didnt know how to drive a clutch) and roasted the clutch and smashed into a neon and went over a curb infront of a lot of people, they even made a thread about it on 507. Could this be the case?