This problem will manifest itself on an application level with a generic scanner failure at scan time.
The root cause of this message is a missing or incompatible TWAIN driver. If you have just installed the drivers from Windows Update, then you likely have a WIA (Windows Image Aquisition) driver. You will need to download and install the full driver package from the vendor.
You can check to see if a TWAIN driver is installed by going to C:\Windows\twain_32 and looking for a folder there. Each compatible TWAIN scanner installed on your system will create a folder here with the TWAIN file inside. If the folder exists but the problem persists, ensure you have the latest driver. If that doesn't help, add the folder path to your PATH environment variable.