Hi RussI'm have a very similar problem with my 2001 RX300 (65k). All the controls seem to work correctly to speed up and slow down the fan as I change the temp setting. When its at ambient temp the fan is basically off. BUT there is nothing but super hot air coming out all the time. I did the diagnostic for the ac/heat system and got 00 for codes = all ok. I suspect the air diverter that mixes the hot/cool air is physically broken (so the servos look like they are working but not moving anything inside) and the hot air just overwhelms anything the AC is putting out. Not sure when I can get to it but the car not really drivable in the summer. I'll repost here if I have anything to report.
Best of luck to you.
Chris