So I installed the game but GOG says it has an update. It gets to about 9% then it says "Release in less then an hour" then restarts the update process. Downloading the offline patch from the website doesnt work. It says "this update does not support your version of the game. please install a new launcher." Im pretty lost here

Did you install the game from DVD? If yes, you need to install patch 1.02 first (activation patch). Without 1.02 you can't install 1.07.
If you have high speed internet I would suggest to download the install files from GOG (with your browser, Galaxy or GOG Downloader) and install the game with them (it is version 1.06 then).
If you are using Galaxy you could try to start the game without it. The exe-file can be found here: The Witcher 3 Wild Hunt\bin\x64 .

It was DVD. Where can I find 1.02?

The game should download it by itself. You can look under Account - Library - Witcher 3 if it is still available there.
I know it is not the same error message you got but you could try this:

Q.: I installed the game and it is well after 19th May, Galaxy still displays 'Waiting for release' and the 'Play' button is greyed out. What can I do?
A.:

1. Exit Galaxy
2. Open it up again
3. Select the game, click More -> Manage -> Verify/Repair
4. Wait for the patching process to finish
5. Play

Source: http://www.gog.com/forum/the_witcher_3_wild_hunt/faq