JudasIscariot: IIRC, that would mean you have the latest version of the game and there is no need to apply the update. I would think the reason you and a few other people are getting an incompatible version is that the patch is trying to patch something that's already ...patched :D At least that's my initial theory based on my own experience :D
My DD installer is 18 months old, though. I downloaded it during the Witcher 2 preorder promo. It claims to be 1.0.1.12, while the updater is 1.0.2.13.
Thiev: Do you see that message at the end of progress bar, or does progress bar not appear at all?
The program runs, says "Updating..." with the progress bar, and then gives the error after the progress bar reaches the end. "Installed version is not compatible with the patch," apparently.
(Running as administrator does the exact same thing, btw.)