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Rambova was born Winifred Shaughnessy in Salt Lake City, Utah. Her father Michael Shaughnessy, was an Irish Catholic who fought for the Union during the Civil War. Her mother Winifred Kimball, was nicknamed `Muzzie` and was a descendant of Mormon Patriarch Heber C. Kimball. Her father was a businessman who partook in mining interests, but eventually he his alcohol and gambling problems became too much for her mother. Her mother became an interior designer and moved to San Francisco. She was married 4 times (Michael was her second husband), eventually settling on millionaire perfume mogul Richard Hudnut. Rambova was adopted by her stepfather, making her legal name `Winifred Hudnut`.

Rambova (and later Valentino) was extremely close to her Aunt, Teresa Warner. Before her marriage to Hudnut, Rambova’s mother married Edgar De Wolfe, brother of Elsie De Wolfe, a prominent Interior Designer. With this marriage her mother became socially successful and wealthy, but tensions grew between her and her daughter. Rambova was rebellious, and mocked her stepfather for being passive. She was sent home from boarding school for `conduct unbecoming of a lady`. To straighten her daughter out, Winifred sent Rambova to a strict British boarding school recommended by her Step Aunt. At the boarding school Rambova learned ballet, French, drawing, and studied mythology.

Rambova continued to be rebellious, labeling her step family `social climbers`, calling her board school `pretentious`, and continually clashed with her mother and Step Aunt. Rambova withdrew from her schoolmates and kept to herself pursuing her passions. Her Step Aunt loathed art deco, possibly drawing Rambova towards it.

Rambova was gifted at ballet, and trained with Rosita Meuri at the Paris Opera during the summers. She traveled to London frequently to watch other performers including Pavlova, Nijinsky, and Theodore Kosloff. Right before World War 1 broke out, Rambova returned to San Francisco where she clashed with her mother once again and insisted she would pursue ballet as a career. Her family had trained her in ballet as a `social grace` and were appalled at the thought of it becoming a career.

Aunt Teresa intervened, offering to move with Rambova to New York where she could study under Kosloff. Rambova, now 17, changed her name to `Natacha Rambova` at this time. At 5`8 she was too tall to be a classical ballerina, but Kosloff continually gave her leading parts. She performed with him in his "Imperial Russian Ballet Company".

Around this time Rambova fell for the 32 year old Kosloff (who had a wife and an invalid daughter in Europe) and the pair began a tumultuous love affair. Muzzie was outraged when she found out, and brought charges of statutory rape and kidnapping against Kosloff hoping to have him deported. Rebelling, Rambova fled New York and hid in Canada and later England to hide from her mother. While in England she posed as a Governess to Kosloff`s wife and child. Muzzie, wanting to bring her daughter home, relented by dropping the charges. She allowed Rambova to keep performing with the company and promised to underwrite the costumes.

Rambova returned and began touring with the Kosloff company. In addition to dancing she began costume designing as well. After the tour ended Kosloff had been hired by Cecil B. Demille to perform as well as contribute designs. Rambova joined him and was dismayed to find herself as part of Kosloff`s `