Earlier in the year, Miller settled for £100,000 in damages and costs after the now-defunct News of the World hacked into several of her mobile phones.
Speaking at the Lord Leveson inquiry into press standards in London, Miller said that she had been left feeling "uptight and confused" after a string of stories were published in the newspapers, particularly about her relationship with fellow actor Jude Law.
Miller, who has appeared in films such as Layer Cake, Stardust and G.I. Joe, described how photographers would follow her in the street, sometimes spitting at her to get an angry reaction for the photo.
She said that the paparazzi would follow her late at night, often driving illegally, and questioned why having a camera made it legal for them to chase her.
"I would often find myself - I was 21 - at midnight running down a dark street with ten big men behind me," she said during short but powerful evidence given to the inquiry.
A particular photo was discussed, published in the Daily Mirror, that had been cropped to imply that Miller was drunk, when she had actually playing with an ill child.
She said that publication could have hurt her career as it may have swayed the mind of anyone considering giving her work.
"The fact that they [the newspaper] knew that they would be sued and would have to pay damages was not really a deterrent," she said.
The actress said that the media's intrusion into her life had left her in a state of "complete anxiety and paranoia", as she felt "violated" and baffled by the string of lurid stories.
"Nobody could understand how this information was coming out," Miller said. "It was impossible to lead any kind of normal life at that time and that was very difficult for a young girl."
She said that when more personal stories about her began appearing in the media in 2005 and 2006, she began questioning those close to her about who could be leaking details to the press.
At one stage, Miller said she gathered people in a room and quizzed them after a story was published based on information only her mother, her sister, and two of her closest friends knew about.
She added: "I accused someone in that room of selling a story."
However, she told the inquiry that it was "really upsetting" after she realised that no-one had betrayed her, as the information had actually been gained through other means.
"The effect that it had on my life was really damaging to me and to my family and friends," she said.
Miller said that it was "very daunting" to take action against News International, former publisher of the News of the World, but she decided to do so after seeing evidence provided by the police.
She said that she is still trying to get News International to disclose the full extent of phone hacking against her, but Robert Jay QC today said that the publisher has now agreed to do so.
Elsewhere at the inquiry, a witness known only as HJK gave evidence earlier today, lawyer Mark Thomson is now on the stand and he will be followed by ex-Formula 1 head Max Mosley and Harry Potter author JK Rowling this afternoon.
Lord Justice Leveson Inquiry coverage roundup:
> Madeleine McCann parents Kate and Gerry 'violated' by press intrusion
> Phone hacking goes beyond News of the World, says lawyer
> Steve Coogan: Newspaper industry is like the mafia
> Phone hacking made Dowler family think Milly was alive
> Hugh Grant suspects Mail On Sunday of phone hacking