Fix "Samsung Magician has encountered an error and cannot continue." Error.
The first thing I tried to do was to re-install Samsung Magician but it didn't help.
Here is what worked for me and I hope it helps you too.
One the start menu, search for cmd, right click on it and click on "run as administrator" (important)
Let Windows System File Checker do its job, one its done you will return back to command prompt.
From there you can close that window and restart your computer.
This should solve your problem.