Magnuson was born in Charleston, West Virginia, to a journalist mother and a lawyer father. She had a brother, Bobby, who died in 1988 of complications from AIDS. She attended Holz Elementary and George Washington High School in Charleston. After graduating from Denison University in 1978, she moved to New York City and was a DJ and performer at Club 57 and the Mudd Club in Manhattan around 1979 through the early 1980s. She created such characters as Anoushka, a Soviet lounge singer, wearing a wig backwards and singing mock-Russian lyrics to pop music standards, and separately sang in an all-girl percussion group, Pulsallama, whose 1982 single "The Devil Lives In My Husband's Body" was a housewife's lament of a spouse who appears to be possessed. Later, in the 1990s, Magnuson fronted the satirical faux-heavy metal band Vulcan Death Grip.