Is it possible to set up winscp so that it notifies me in case of any kind of error or failed transfer? an email automatically sent to me would suffice, but is there a way to set up a winscp3 script to do this?
You can't do the notification from winscp itself, but as it returns an errorlevel of 1 in case of error, it is very simple to trap it and send any kind of notification you like after that (event logging, sending email, ...). You will need to use external tools for the notification but there are plenty available.
winscp3.exe /console ...
IF ERRORLEVEL 1 CALL :error-notification
:: wait 1 minute
ping -n 60 127.0.0.1 >NUL