European champion Chambers again put Olympic and world champion Maurice Greene in his place by storming to 100 metres success in 9.98 seconds.
It was the fourth time the 24-year-old Englishman has beaten the American this season.
Triple Olympic champion Jones won her much-hyped showdown with arch-rival Zhanna Pintusevich-Block, gaining revenge for her shock defeat by the Ukrainian at the world championships last year.
American Tim Montgomery chased Chambers home in 10.05 with Greene, who said recently he had suffered a “technically horrible” season, taking third in 10.06.
The women’s 100 metres was, as expected, a battle between Jones and Pintusevich-Block, the first head-to-head meeting this season between the two fastest women in the world.
It was the 26-year-old Jones who prevailed with a comfortable victory in 10.97 seconds, ahead of Pintusevich-Block (11.11) and American Chryste Gaines (11.12).
Victories for Chambers and Jones overshadowed a memorable night for Felix Sanchez, who secured a unique double.
The 24-year-old from the Dominican Republic won the 400 metres hurdles, then returned to the track two hours later to finish first in the 400 metres.
On an emotional night, Welshman Colin Jackson received a standing ovation following his last ever run at Crystal Palace.
The 35-year-old double world champion and world record holder, who says he will retire next year, had to be content with third behind Americans Allen Johnson and Larry Wade in the men’s 110 metres hurdles.
Johnson, the current world champion and the fastest man at the distance this year, took the prize in 13.23, with Wade clocking 13.26 and Jackson 13.37.
Another Briton to feel age catching up with him was European javelin champion Steve Backley.
Backley managed a best throw of 82.49 metres, only good enough for sixth place with Russian Sergey Makarov, silver medallist behind the Briton in Munich, coming out on top with a mark of 86.70.
“I am 33 years old, in Munich I felt like 23 years old and today I feel like 43 years old,” Backley said.
Olympic 5,000 metres champion Gabriela Szabo suffered another surprise defeat as she was outgunned by Ethiopian Berhane Adere.
The 26-year-old Romanian, who took silver behind Turkey’s Sureyya Ayhan in the women’s European 1,500 metres final in Munich, finished second again. Adere kicked clear 200 metres from home and held on to win in 14:33.65.
Szabo’s famous finishing kick came all too late, closing on Adere in the final strides to take second in 14:34.29, with Ireland’s Sonia O’Sullivan third.
Moroccan Hicham El Guerrouj won the men’s mile but his attempt to beat his own world best ended in failure.
Leading results:
WOMEN’S:
800 metres: 1. Maria Mutola (Mozambique) one minute 59.06 seconds; 2. Jolanda Ceplak (Slovenia) 1:59.61; 3. Mayte Martinez (Spain) 2:00.54; 4. Diane Cummins (Canada) 2:00.76; 5. Ludmila Formanova (Czech Republic) 2:01.13; 6. Susan Scott (Britain) 2:01.47.
High jump: 1. Hestrie Cloete (South Africa) 1.97 metres; 2. Marina Kuptsova (Russia) 1.97; 3. Inga Babakova (Ukraine) 1.94; 4 equal. Irina Mikhalchenko (Ukraine) 1.94, 4 equal. Viktoryia Palamar (Ukraine) 1.94; 6. Viktoryia Seryogina (Russia) 1.90.
Pole vault: 1. Svetlana Feofanova (Russia) 4.62 metres; 2. Monica Pyrek (Poland) 4.62; 3. Yelena Belyakova (Russia) 4.52; 4. Stacy Dragila (US) 4.52; 5. Yelena Isinbayeva (Russia) 4.40; 6. Annika Becker (Germany) 4.40.
100 metres: 1. Marion Jones (US) 10.97 seconds; 2. Zhanna Pintusevich-Block (Ukraine) 11.11; 3. Chryste Gaines (US) 11.12; 4. Tayna Lawrence (Jamaica) 11.17; 5. Debbie Ferguson (Bahamas) 11.22; 6. Kim Gevaert (Belgium) 11.45.
Long jump: 1. Maurren Maggi (Brazil) 6.78 metres; 2. Tunde Vaszi (Hungary) 6.70; 3. Jade Johnson (Britain) 6.60; 4. Olga Rublyova (Russia) 6.56; 5. Tatyana Ter-Mesrobyan (Russia) 6.56; 6. Jackie Edwards (Bahamas) 6.55.
100 metres hurdles: 1. Bridgette Foster (Jamaica) 12.65 seconds; 2. Gail Devers (US) 12.71; 3. Glory Alozie (Spain) 12.84; 4. Jenny Adams (US) 12.96; 5. Anjanette Kirkland (US) 13.02; 6. Vonette Dixon (Jamaica) 13.07.
5,000 metres: 1. Berhane Adere (Ethiopia) 14:33.65; 2. Gabriela Szabo (Romania) 14:34.29; 3. Sonia O’Sullivan (Ireland) 14:46.97; 4. Tirunesh Dibaba (Ethiopia) 15:04.54; 5. Marta Dominguez (Spain) 15:18.80; 6. Ebru Kavalioglu (Turkey) 15:19.13.
MEN’S:
One mile: 1. Hicham El Guerrouj (Morocco) 3:50.86; 2. Cornelius Chirchir (Kenya) 3:51.68; 3. Rui Silva (Portugal) 3:52.21; 4. Vyacheslav Shabunin (Russia) 3:52.49; 5. Reyes Estevez (Spain) 3:53.41; 6. William Chirchir (Kenya) 3:54.28.
400 metres: 1. Felix Sanchez (Dominican Republic) 45.14 seconds; 2. Alvin Harrison (US) 45.31; 3. Ingo Schultz (Germany) 45.46; 4. Daniel Caines (Britain) 45.60; 5. Antonio Pettigrew (US) 45.84; 6. Eric Milazar (Mauritius) 46.51.
Triple jump: 1. Walter Davis (US) 17.33 metres; 2. Phillips Idowu (Britain) 17.29; 3. Jonathan Edwards (Britain) 17.21; 4. Alexander Martinez (Cuba) 16.97; 5. Larry Achike (Britain) 16.71; 6. Aleksandr Glavatskiy (Belarus) 16.65.
100 metres: 1. Dwain Chambers (Britain) 9.98 seconds; 2. Tim Montgomery (US) 10.05; 3. Maurice Greene (US) 10.06; 4. Francis Obikwelu (Portugal) 10.15; 5. Frank Fredericks (Namibia) 10.21; 6. Shawn Crawford (US) 10.24.
3,000 metres: 1. Ben Limo (Kenya) 7:50.29; 2. Paul Bitok (Kenya) 7:50.54; 3. Luke Kipkoskei (Kenya) 7:50.68; 4. Driss El Himer (France) 7:51.30; 5. Richard Limo (Kenya) 7:52.06; 6. Alberto Garcia (Spain) 7:52.09.
200 metres: 1. Darvis Patton (US) 20.25 seconds; 2. Ramon Clay (US) 20.34; 3. Marlon Devonish (Britain) 20.43; 4. Christian Malcolm (Britain) 20.77; 5. Dwayne Grant (Britain) 20.79; 6. Troy Douglas (Netherlands) 20.82.
110 metres hurdles: 1. Allen Johnson (US) 13.23 seconds; 2. Larry Wade (US) 13.26; 3. Colin Jackson (Britain) 13.37; 4. Duane Ross (US) 13.45; 5. Stanislav Olijar (Latvia) 13.50; 6. Shaun Bownes (South Africa) 13.63.
Javelin: 1. Sergey Makarov (Russia) 86.70 metres; 2. Eriks Rags (Latvia) 85.32; 3. Aleksandr Ivanov (Russia) 83.78; 4. Boris Henry (Germany) 83.13; 5. Harri Haatainen (Finland) 82.68; 6. Steve Backley (Britain) 82.49.
800 metres: 1. Yuriy Borzakovskiy (Russia) one minute 44.78 seconds; 2. David Krummenacker (US) 1:44.87; 3. Joseph Mutua (Kenya) 1:45.02 4. Antonio Reina (Spain) 1:45.69; 5. Andre Bucher (Switzerland) 1:45.73; 6. Khadevis Robinson (US) 1:46.19.
400 metres hurdles: 1. Felix Sanchez (Dominican Republic) 48.08 seconds; 2. James Carter (US) 48.09; 3. Hadi Al Somaily (Saudi Arabia) 48.62; 4. Stephane Diagana (France) 48.68; 5. Joey Woody (US) 49.13; 6. Matt Elias (Britain) 49.59.—Reuters