Initially I had 64-bit JDK, running on 64-bit Windows, using 64-bit Android Studio.
After installing SmartGit, it required me to install 32-bit JDK. Hm... A little bit of research shows that there is no bit difference in my circumstances, so I go ahead and replace the 64-bit JDK with the 32-bit one. This made SmartGit run fine.
The next issue was running the Android Studio. It complained that it needs a 64-bit JDK. Whoa!
Fortunately, it turns out that Android Studio comes with two .exe files - 32-bit studio.exe and 64-bit studio64.exe. The default shortcut uses the 64-bit version.
Running studio.exe (and adjusting the shortcut to use this file) fixes the problem. All systems go, again.