Hi Champ,
I really have no suggestions on how to deal with the issue but I do understand. My aunt (my mother's younger sister) has adopted my mother's life as her own. She truly believes that things my mother did are her own. Like for example, my mother was voted best dancer in high school but her sister tells everyone that it was her. She's done it with jobs. Boyfriends. Trips. She tells people she held such and such a position or was engaged and it's just not true. She also exaggerates these beliefs to the extreme. If confronted, she is confused why someone wouldn't believe her. That's because she has convinced herself it's all true.
I think it started because she was living in the shadow of her popular sister and she started exaggerating to compensate for the social skills/acceptance she lacked.
Delusional Disorder fits her pretty well although she's never been diagnosed. Here's the
LINK. You might find some info that will help.