Yesterday we were talking and he kept telling me how sweet I am and what a good person I am and that he's really happy we met even if things don't work out. We've only been dating a week. So does this translate to: I'm not into you, but I still want to hook up? That's what I took it as.
No, this means he's falling more in like with you, and you should take it as a compliment. He's saying "even if things don't work out" because you've only been going out for a week, and he might be worried about it since it's still not very serious.