Radio flyer, my gut reaction to your personality question and lying popped up "Casey Anthony". Sorry this person is causing you so much stress.

I like your idea of limiting your time with this person. It is her problem, but it is also that ripple effect that 'gets you'. I have a person in my life that I dearly love who sometimes 'remembers' things differently than I do, and tends to 'embelish' the story to make it sound better. i know it is a lie, but it isn't one that is meant to hurt others. Just a boastful sort of thing. I can live with that. Maybe we all do those kinds of lies sometimes. That is human.

Chronic lying for one's own gain isn't and does cause others damage, distrust, fear and wanting not to spend time with them.