Hey I've seen that new patches for this game have been posted however I don't see a download link or anything and it doesn't seem like the game auto updates because mine still says it's version 1.01. Can anyone help me with updating to the new version with bug fixes.
Where have you downloaded the game from? If it's through Steam, it should have updated automatically. If you've installed the game through the downloadable installer, all you need to do is download the latest one and run it. If you've installed through GoG, Craig says he can only suggest they push the newest release.
I downloaded it from GOG... does that mean I can't update it then :/
From what I understand: yes. Until GoG updates, you can't.
Personally, I'd hold off on updating until the inventory system is sorted out. The latest patches seem far more unplayable than earlier versions.
That doesn't mean you can't enjoy working on content creation! I personally haven't finished the main campaign yet. I've having too much fun playing around with the more functional systems (i.e. scripting and dialog).
GOG has updated versions (though not necessarily the very latest patch). I'm not sure what their process is for getting updates out to users, though, as they won't allow games sold through them to automatically check for updates and prompt patch downloads.