I updated to the 1.06 patch a while back, but now see there are "1.06 hotfix GOG-7 and hotfix 2 GOG-8". What are those? Are those small fixes to the 1.06 patch, or something entirely different? I don't know if I need to be adding those or not.

A hotfix is a hotfix. Apply them, unless you installed the 1.06 installer, in which case they're included.

If you updated to GOG-7, you should apply the hotfix 2 (GOG-8) to have the latest version. I'd say, if you are not sure, you can always install the hotfix anyway; if you already have it, it won't change anything; if you don't have it, it will update your game. At least this is what happened in my Mac version when installed a hotfix twice by mistake.

By the way, a hotfix is a small patch that corrects a specific bug. We could say, in this case, that they are patches to the patch.

Ok, well I already have the main 1.06 patch and it seems like these may be newer. I guess I'll just install these two hotfixes over it and it can't hurt either way!