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Sounds like the controller which sends hot water through the heat exchanger is broken, and consequently instead of stopping the hot water from flowing, it's allowing it through, and then the air coming in is being heated. This happened on my friends Nissan 200sx.
Because of this, with AC on, it might make the temp marginally cooler but thats it.
I've no idea where the valve is to send hot water in to the heater matrix. On my previous cars it was clearly visible under the hood on the bulkhead. You might be able to check it if there are externally moving parts on it. Meaning, turn temp up to max and then down to min and see if anything moves, or if it gets stuck halfway etc.
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