Born Marilyn Ann Briggs in Providence, Rhode Island, Chambers was raised in Westport, Connecticut, in a middle-class household. It is often reported that she was born in Westport; however, in a 2007 interview Chambers confirmed she was born in Providence but grew up in Westport. Her father was in advertising and her mother was a nurse. She was the youngest of three children, including a brother, Martin Briggs (keyboardist for 1960s Boston band The Remains), and a sister, Jann Smith.

On February 1, 1985, while performing her nude act at the "Cine-Stage" within the Mitchell Brothers' O'Farrell Theatre in San Francisco, Chambers was arrested by a vice squad and charged with committing a lewd act in a public place and soliciting prostitution. It was alleged by plainclothes policemen who were in the audience that Chambers allowed audience members to touch her with their hands and mouths during her show called "Feel the Magic". She was released on $2,000 bail and the charges were later dropped. "I've never been arrested in my life for anything, ever, so this is kind of a big shock for me, not only as a performer but as a human being", Chambers said at the time. "It's a heartbreaker. This is supposed to be a hip city. I really love -- make that LOVED -- this city. These people have been my fans for years, and it's a thrill for them to touch me up close. There's nothing illegal if I'm not taking money."  Chambers' attorney claimed that Chambers was used "as a pawn in a struggle over control and adult businesses." Chambers' arrest came three days before the Board of Supervisors were to vote on a proposed ordinance to eliminate police permits for adult bookstores and theaters. In the wake of her arrest, the Board stripped police of their power to license the city's adult theaters. "The O'Farrell was packed the day after we were arrested," Chambers said later. "And they put the mayor's phone number up on the marquee -- 'Call Mayor Dianne Feinstein'...I'm in jail with my fur coat and nothing else on, and [the police officers] want to take pictures. I took a mug shot with every cop in the place, and they're going, 'I'm really sorry we had to do this.' And the next night they were all back enjoying the show".  Later that year on December 13 she was arrested during a performance at Stage Door Johnny's, a strip club in Cleveland. Police said she was nude except for her shoes and was having sexual contact with an audience member. She was charged with promoting prostitution and was held in jail until she was freed on a $1,000 bond. Chambers denied the charge, saying, "I did the same show I've been doing for the last six years. Police just happened to be in the audience." In November 2012 the mugshots from Chambers' Cleveland arrest sold on eBay for $202.50.

What happened as a result of that arrest?
She was released on $2,000 bail and the charges were later dropped. "